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Oct. 4, 2022, 2:14 p.m. EDT

As Kim Kardashian is fined by the SEC, law professor says it’s ‘easy to convince people’ to buy crypto

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By Weston Blasi

Social media personality Kim Kardashian was fined $1.26 million by the Securities and Exchange Commission over one of her Instagram posts from 2021 that promoted an EMAX token.

Kardashian was fined for not disclosing that she was paid $250,000 for the post — she did not deny or admit to the SEC’s findings.

See also: Elon Musk wants to move forward with his purchase of Twitter. Here’s how some Twitter users reacted.

The cryptocurrency she was touting in the Instagram post that went out to her 250 million followers was for EthereumMax, a company that offers ERC-20 tokens .

“It appears to be particularly easy to convince people to spend money on cryptocurrency projects,” Darren Heitner, Professor of Sports Law at the University of Florida, told MarketWatch in an email earlier in 2022, before the $1.26 million fine from the SEC was announced. “Which makes it more important for athletes and celebrities to conduct thorough due diligence on these platforms before associating themselves with the companies and do whatever they can from being viewed as merely being money-hungry and connected to a pump-and-dump scam.”

That token  has plummeted in value  since 2021, according to data from CoinMarketCap, and is now trading at $0.000000005468.

It’s worth making a distinction between the situation with Kardashian and other celebrities who touted crypto in recent years like Matt Damon and Larry David as those actors were featured in official ads for crypto exchanges, as MarketWatch’s Chris Matthews reported .

See also: SEC fine may crimp Kim Kardashian’s capital raising for her private-equity firm Skky Partners: expert

Crypto markets can be extremely volatile  and it’s important to make informed financial decisions when dealing with crypto.

The SEC fine comes as a “ crypto winter ” has taken shape.

See also: Mark Cuban says Gen Z is the ‘greatest generation,’ and calls baby boomers ‘disappointing’

Prices for crypto like bitcoin /zigman2/quotes/31322028/realtime BTCUSD -0.39%  and ether /zigman2/quotes/108573964/realtime ETHUSD +0.29%   have continued to crash . Values for many cryptos are  down over 70% from 2021 highs . The total market cap for all crypto nearly hit $3 trillion during parts of 2021, but is now lower than  $1 trillion .

On Monday, bitcoin was trading just below $20,000 and etherum was trading just below $1,400.

US : CoinDesk
-144.83 -0.39%
Volume: 0.00
Nov. 30, 2023 5:48a
US : Kraken
+5.84 +0.29%
Volume: 0.00
Nov. 30, 2023 5:49a

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