Why did Kim Kardashian pay a $1.2 million penalty for promoting crypto? - Crypto in Plain English - Episode 272 - by cryptohunt.it

Why did Kim Kardashian pay a $1.2 million penalty for promoting crypto?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of this daily show.

Have you heard the news that Kim Kardashian had to pay a whopping $1.2 million (!) dollar penalty for promoting a crypto token in one of her social posts?

Here’s what happened: Kardashian had been paid $250,000 for a single post about a token called EthereumMax. Not a bad payday if you ask us. But here’s the problem: She didn’t tell anyone that it was a promotional post, and instead suggested that friends told her about it. Easy to see how people could have thought they stumbled into the next big thing, now that Kardashian is talking about it.

But because celebrities have large social media followings, there are strict rules on labeling these kinds of posts for what they are: blatant ads. The SEC, which controls how financial assets are treated in the US didn’t think Kardashian followed those - and the fact that she paid a $1.25 million dollar penalty for a $250,000 post suggests that she was well aware and just wanted this to go away.

This story is as old as the proverbial snake oil and all too common in the crypto world. A made-up crypto currency enlists celebrities to prompte it, unknowing users buy into it, the price goes up, and the scammers dump their holdings for a profit.

So, how do you know what project is legitimate? Use common sense and follow a few simple rules: If it smells rotten, it probably is. Never heard of something and suddenly a busy celebrity magically discovered it? Red flags everywhere.

And even more important: Always do your independent research - once you read up on a token you’ll spot a bad one from a mile away. Think all the resources you can find are dry and technical though? Well - we have great news… You probably saw it coming, but give Cryptohunt a try at www.cryptohunt.it. We’ll brake it down in really easy to understand terms.

Oh, and what about that EthereumMax token she promoted? It was a scam, it had nothing to do with Ethereum, and had no utility. The only thing worth remembering: it has lost over 98% of its value since Kim Kardashian posted about it.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.