News broke this Monday that none other than mega-celebrity Kim Kardashian has settled in her case against the SEC (Securities and Exchange Commission) for the amount of $1.26 million US dollars, for her role in promoting the Cryptocurrency called EthereumMax. For those unfamiliar, the SEC is an independent government regulator in the United States that exists to protect investors and uphold financial market rules and principles.
Obviously, this story is of huge interest to any Crypto investors and again is another reminder to be very careful about your Crypto investing choices and why this site will promote coins like TAMA and IMPT instead of these pump and dump scams that keep appearing on celebrity’s social media pages.
Landmark Crypto Case
The case is ground-breaking in many ways, first of all, because we have heard whispers for quite some time now that numerous celebrities, from different walks of life, were being investigated for promoting Cryptocurrencies that turned out to be scams.
Secondly, although many people online are scoffing at the amount she will be fined in comparison to her net worth, that’s not what is the important thing to look at here. What’s important is the precedent.
Giving a fine to someone of the caliber of Kardashian shows that the SEC mean business and this is good news for Crypto investors as it shows the powers that be are willing to regulate and look after the crypto markets.
The “financial promotion with the single biggest audience reach in history.” Outgoing U.K. Financial Conduct Authority (FCA) Chairman Charles Randell called Kardashian’s now infamous post. So, although many want to mark the settlement as just a publicity stunt, I am of the opinion that not all publicity stunts need to be bad, and some, can be successful symbiotic relationships.
In this case, the downtrodden SEC got their win and their publicity and the public, hopefully, got the point. Influencers are obviously an easy target for pump and dump scammers and Kardashian failing to classify that she was paid $250,000 when she sent the promotion to her 220 million Instagram followers is morally rotten at best.
Trouble in the community
Many in the Crypto community are taking the view that well if you are stupid enough to take Crypto advice from someone like Kardashian then you deserve what you are getting. They rightly or wrongly would like to focus on some of the other drama within the community which involves what appeared to be more trustworthy figures and organizations getting in hot water.
However, in my opinion, the lessons that can be learned from the likes of the three arrows debacle are just as important as what can be drawn from the Kardashian case and similar celeb cases that we will likely be seeing in the not-too-distant future.
Lessons to be learned
The lesson is vigilance. The most annoying phrase in people’s lives during the pandemic was probably; do your own research, but in Crypto, it is such a valuable rule.
People would have scoffed and judged investors for taking advice from Kardashian and other influencers while they religiously followed the guidance of companies like Three Arrows who are now drowning in a mixture of debt and the consequences of some terrible decisions. Followers of both may have taken different paths but the destination was the same.
Rug pulls and pump and dump scams are so plentiful in our community so the people you can trust you have to be 100 percent on. Whether you are new to the game or experienced it’s no harm to take a step back and have a look at your own research.
Take a look at who are the best Crypto accounts to follow online and do a little research into what others have said about them so you can get a sense of their track record. Have a look at some YouTube Crypto videos, take a look at what has been common in past scams and rug pulls and get a grounding in what’s good and bad in an influencer.
Safe (and eco-friendly) cryptocurrency alternatives – TAMA and IMPT
Lastly, take a look at sites like ours and scroll through as many articles as you muster. You will see our writers, who do the research will generally have a favorite flavor at that particular time. As said at the start of the article TAMA and IMPT are two that our team seem to be fond of at this moment in time.
To finish up, this won’t be the first case that we hear of a celebrity getting fined for promoting a bad Crypto scheme, that is for sure. So, the onus is on investors now to try to give themselves enough of a back catalog of information that they don’t allow these scams to catch them out. Education and research can go a long way in the Crypto community in shoring up the defenses and in return protecting the wallets.