Kim Kardashian was recently paid to promote Ethereum Max (not to be confused with Ethereum) and she is just one on a long list of celebrities who have endorsed new cryptocurrencies. Considering the huge issue of criminal activity in crypto, as well as the volatility of the market, what are the ethics behind this celebrity endorsement?
The negatives of celebrity cryptocurrency endorsement
Cryptocurrency investment is very new and unknown to most celebrity social media audiences. According to a study in February 2022, only 6.1% of Britons owned some form of cryptocurrency, therefore, without proper education or knowledge of investing in crypto, celebrity endorsement is concerning.
There have been many cases of social media influencers being paid by scammers to promote coins. These coins either don’t exist at all or are rug-pulls that grow huge through speculation and then disappear with thousands (or even millions) of investors’ money.
Unfortunately, there is still an issue with criminal activity in crypto. On March 29th the Gameplay currency Axie Infinity announced that they had been hacked and $625 million had been stolen. As a result, thousands of users lost money. With this in mind, any potential investors in crypto need to be aware of the risks.
A legal case has also recently been filed against Kim Kardashian and former MBA star Paul Pierce in California. They have been accused of exploitation, promoting the cryptocurrency Ethereum Max to deceive investors and benefit themselves. Ethereum Max was labelled a ‘disruptive’ new cryptocurrency by the celebrity endorsers. However, people have since alleged that the promotion was about deceiving investors into boosting the token’s price so that they could sell their own coins at a profit.
It’s also suspicious that the celebrities used a coin named so similarly to the very successful Ethereum (ETH). Members of the public feeling inspired by the online endorsement may have been easily misled by the advertisement, thinking that the coin was more stable and successful than it really was.
Are there any positives to celebrity crypto endorsements?
The FCA chairman has said that Kim Kardashian’s Instagram post may have had ‘the single biggest audience reach’ in financial history. Considering that 75% of cryptocurrency investors and 95% of coin founders are men, seeing these huge statistics come from a woman in finance is unprecedented.
Despite her controversial reputation, Kim Kardashian has a huge social influence with millions of followers paying attention to her every move. This power could be used to pave the way for women to invest more in finance, utilising cryptocurrency as a platform for this social change.
What’s the safest way to invest in crypto?
There is no fail-safe method that will 100% ensure financial security and investor profit in cryptocurrency. Ultimately it’s best to do your own research and work out which coin suits your individual needs and desires.
For example, it’s worth considering that Ethereum (ETH) is a less expensive alternative to Bitcoin. Comfortably ranked second on https://coinmarketcap.com/, Ethereum (ETH) offers a lot of potential for financial security and stability. However, as with any crypto investment, this is never a guarantee.
Investing in a presale coin is also a possibility to protect your investment in the short term. The coin won’t fluctuate pre-launch so you initially lessen the risk of volatility. One popular presale coin with a lot of potential at the moment is Logarithmic Finance (LOG). This coin focuses on interconnectivity, ‘carefully designed and built to promote seamless connectivity between early-stage innovators and investors’. Logarithmic Finance (LOG) is also a decentralised coin with a community base, priding itself on its ‘dynamic and ever-growing community’.
As with anything in crypto, it’s always important to remain skeptical. The market is volatile and nothing is guaranteed. However, Logarithmic Finance (LOG) is an exciting new potential coin that’s worth keeping an eye on.
Logarithmic Finance (LOG)
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