Some people might be getting rich off of cryptocurrency, but the learning curve for newcomers is steep. You might be tempted to overlook the complexities and simply follow the advice of someone influential, like your favorite celebrity. But is that a smart move?
Celebrities Are Not Financial Advisors
This may seem obvious, but celebrities don’t get paid to give financial advice. Rather, they’re paid to promote products, and sometimes those products are, more or less, financial investments.
CNBC reported in January 2022 that media personality Kim Kardashian and professional boxer Floyd Mayweather were facing lawsuits over a particular cryptocurrency called EthereumMax. Both celebrities were paid large sums to promote EthereumMax to their fans. Later, EthereumMax dropped in value by around 97%, leading to investors accusing those celebrities of participating in a “pump-and-dump” scheme.
Pump-and-dump scammers recommend (or, more aptly, hype) an investment so that it grows in value before they themselves sell their investments for a high return. That “dumping” deflates the value for those fooled into the investment, causing them to lose money. It’s an old trick that used to be done over the phone but is now even more prevalent thanks to the internet. And EthereumMax is far from the only crypto-based scam out there.
Do Real Research
It’s worth noting that serious crypto enthusiasts never saw EthereumMax as a good investment or…
