TL;DR Breakdown
• FCA chairman says these cryptocurrency promotions can drive scams.
• Kim did nothing illegal because she admits in the post that it is a paid advertisement.
Kim Kardashian never stops being a trend, even in the cryptocurrency market. Recently the head of the financial control agency in the United Kingdom spoke about an announcement made by the American diva and businesswoman. Kim had published an image on the social network showing her support for the Ethereum Max.
The FCA chairman, Charles Randell, said that the cryptocurrency developers paid Kardashian to promote the Ethereum Max. With over 250 million followers, Kim Kardashian successfully promoted crypto.
Artists promoting cryptocurrencies
The regulator believes this cryptocurrency promotion was one of the largest ever seen in the UK and other countries. Randell believes these marketing campaigns towards cryptocurrencies are getting out of control, leading to irreversible problems. Regarding Ethereum Max, Randell clarifies that the crypto was developed a month before the promotion and had only speculative purposes in its value.
However, Randell adds that he does not have enough evidence to charge the token as a scam. But he dares to say that developers often pay social media influencers like Kim Kardashian to promote cryptos. These internet stars accept the contract, unaware that crypto may be clinging to a Ponzi scheme.
Randell finishes talking about cryptocurrencies remembering these tokens have no real value in the financial market. Interest in cryptocurrencies is increasing, which is something of concern for the president of the financial conduct agency.
FCA against Kim Kardashian’s promotions towards cryptos and other influencers
The FCA is back with a new wave of regulations towards cryptocurrencies and crypto promotions from influencers like Kim Kardashian. The regulatory agency clarifies that its compensation program does not support the digital asset market, so those who invest in them can lose all their money.
Randell is remembered for the words, “whoever invests in cryptocurrencies must be prepared to lose his money,” which has led him to act against crypto. The FCA raises bans after Bitcoin adoptions, and other tokens spiked following their price spike.
Although Randall speaks negatively of Kim Kardashian’s post, he acknowledges that the diva broke no FCA laws. This is because the businesswoman clarified that the post was paid. Kim even showed that she was dealing with the Ethereum Max project.
According to CoinDesk speculations, Kim made around $ 500,000 or even more from the post.
Other celebrities like Elon Musk, Tesla CEO, have talked about cryptocurrencies like Dogecoin and Bitcoin, which drive up their price. Gene Simmons and Snoop Dogg have also participated in these crypto promotions using their Twitter accounts.