Multiple Hollywood celebs have now come under fire for their role in promoting the highly controversial token called Ethereum Max. Various high-profile celebrities like Kim Kardashian, Floyd Mayweather, and Paul Pierce took to their social media platforms with hundreds of millions of followers to promote what many have said to have been a classic pump and dump scam.
The token which had risen in popularity during the summer had subsequently lost a significant portion of its value after the hype generated by the Hollywood celebs died down. This has prompted a lawsuit from an investor accusing the celebrities of knowingly pumping the price so they could dump their bags on other investors.
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Ethereum Max Dumped On Investors
In a lawsuit posted on Law360, Hollywood celebrities Kim Kardashian, Floyd Mayweather, and Paul Pierce were listed as defendants in a suit filed by an aggrieved party who had invested in the cryptocurrency due to the promotion and endorsement by the celebrities. The plaintiff who is identified as Huegerich accused the defendants of promoting the company as one with great prospects and high return margins.
Huegerich, like most other investors who had gotten into the cryptocurrency after following these celebrities, was left with next to worthless bags when the token had dumped over 70% from its all-time high. The plaintiff argued that the defendants listed in the complaint had promoted Ethereum Max (EMAX) just so they could sell their own tokens for a profit and leave others out to dry.
EMAX crashes from all-time high | Source: EthereumMax on TradingView.com
“Defendants touted the prospects of the company and the ability for investors to make significant returns due to the favorable ‘tokenomics’ of the EMAX Tokens In truth, defendants marketed the EMAX Tokens to investors so that they could sell their portion of the float for a profit,” the complaint read.
Huegerich plans to make the lawsuit into a class-action suit against the celebrities, of which he will represent as the lead plaintiff in the case.
The Rise And Fall Of EMAX
Ethereum Max had first come into the spotlight when world boxing champion, Floyd Mayweather, had worn a shirt sporting the words Ethereum Max on it to the 2021 Bitcoin conference in Miami. Not long after, Ethereum Max was the sponsor of a widely publicized boxing match between the boxing superstar and moderately-liked YouTuber, Logan Paul.
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Kim Kardashian and Paul Pierce would also jump on the bandwagon to promote the Ethereum Max token. The reality star posted multiple videos on her Instagram story promoting the EMAX token by referring to the 400 trillion token burns that took 50% of its supply out of circulation. NBA star Pierce had then posted on Twitter promoting the EMAX token in the same time frame.
The token had benefitted from the publicly being generated by the celebrities as it quickly rose in value. In June, the token peaked at an all-time high of $0.000000597636. However, it quickly lost all of its value causing average investors to lose money.
The price of the token continues to trend low at $0.00000002 with a 24-hour trading volume of $57,000.
Featured image from Bloomberg, chart from TradingView.com