Explained: How Kim Kardashian reared up in a crypto scam

cnbctv18.com:

Celebrity and socialite Kim Kardashian and retired professional boxer Floyd Mayweather have been named as defendants in a lawsuit over a crypto scam. The two, along with former NBA star Paul Pierce, are being sued over allegations that they misled investors over a cryptocurrency scam associated with the EthereumMax token.

The token has a price of $0.00000001904 though it had reached an all-time high price of $0.0000008546 last year in May.What is the lawsuit about?A class action lawsuit filed in the US District Court for the Central District of California states that the stars, along with the developers of EthereumMax, conspired to artificially increase the price of the token before selling it off and crashing the price. These types of pump and dump scams are common in the crypto world.Also read: 2021 recap: Biggest crypto scams of the yearAll three named in the lawsuit promoted the token in various ways and instances on social media.

Additionally, the name of the token, EthereumMax, suggests a connection to the second most popular token Ether and its blockchain Ethereum but the EtheureumMax token has no connection to the former two. The token was only around for less than a few months when the celebrities had made their endorsements.What did the celebrities do?Kardashian had shared a post on her Instagram account, which is followed by 250 million individuals, about the token.“Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the Ethereum Max token! A few minutes ago Ethereum Max burned 400 trillion tokens -- literally 50% of their admin wallet -- giving back to the entire E-Max community,” Kardashian had posted.Also read: Here is a look at celebrities who promoted