Be Wary of Ethereum Max: What is it and why is Kim Kardashian pumping it?
They weren’t thinking about Kim Kardashian when the official website for Ethereum described Ethereum as the “Foundation for our digital future.”
Her Instagram account to over 200 million followers received her advertisement for Ethereum Max. This made it the single biggest piece of social media crypto promotion ever in terms of absolute reach. The only one to have more influence over crypto via social media is Elon Musk.
“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.” Followed of course by obligatory hashtags: #emax, #disrupthistory, #ethereummax #wtfemax #giopemax, #AD
In a youtube video, CoinDesk analysts claimed this might be the ‘biggest crypto shill of all time.’
We know Kim was paid for her post. She has to claim so with the hashtag #AD, meaning the post is for advertising purposes. The details of just how much she charged for the post is another story. We do know Kim Kardashian can begin to ask for sums starting from $858,000 US per Instagram post. This isn’t her first time either! She also once promoted Bitcoin at a charity event.
So what’s wrong with advertising Ethereum Max on Social media?
The real harrowing thing? Kim is not the only social media influencer with their claws in young people. Beauty queen influencer Loren has 21.8 million followers and delivered the news to her fans about her partnership with crypto exchange Gemini. Her affiliate campaign offers users 10 free dollars (We assume USD) in BTC for signing up to Gemini.
She’s not the only one either. NBA great Paul Pierce shouted out EthereumMax or ‘emax.’ Boxing king Floyd Mayweather wore an EthereumMax t-shirt during his weigh-in for the fight against Logan Paul. In fact, the Ethereum-based token was the only crypto accepted for online ticket purchasing for the Mayweather/Paul fight on pay-per-view.
However, that’s for Bitcoin. Ethereum Max might be something completely different…
So, what is Ethereum Max?
According to the project’s official website, Ethereum Max is a yield-based token providing 3% distribution of every transaction to existing eMax wallet holders. The project also considers itself to be a ‘lifestyle’ token offering access to ‘VIP Experiences, lifestyle brands, sporting events, concerts and more.’
The fundamental most important points about Ethereum Max are:
- No one knows who actually built Ethereum Max, except for maybe Kim Kardashian West (And anyone else involved!).
- Ethereum Maxi s an ERC-20 token. It is not an upgrade of the Ethereum token. ERC-20 tokens require little technical skill to create.
- It was launched in April or May of 2021. Ethereum Max’s novelty should be one reason to be wary of it.
- There is no whitepaper, no development roadmap, and no one actually knows who made it.
- ERC-20 tokens create value by operating secondary software systems, and have no real function. No one knows what Ethereum Max is actually for.
- There is no About Us on the website, nor do we know anyone of the players involved.
The bottom line is to be careful
It’s scary to think just how much influence celebrities like Kim K have in a world where more and more young people are becoming retail crypto investors. For all we know, the 3% financial incentive touted by Ethereum Max is going to just fall through if the token’s value plummets.
Just like that, its the small-time investors at the mercy of whale wallets that will be left holding the bag. One Youtube personality and billionaire crypto investor Alex Becker said that retail investors are the ‘blood sacrifice’ for whales seeing massive returns. Maybe that’s why Ethereum Max’s logo is red?
Pundits who have investing experience might be right when they compare many cryptos to ponzi schemes. Meanwhile, Instagram influencers get to enjoy the revenue from paid posts, no matter what happens to the markets or to people’s savings as a result.