Thanks to the massive appeal of cryptocurrencies, these digital tokens have gone mainstream. And who else could better reflect this than the multitude of celebrities, influencers, social media icons, even basketball legends and boxing champs joining the fray.
One of these influential celebrities is the reality show star Kim Kardashian-West, who posted an ad on her Instagram Story promoting Ethereum Max to her 228 million followers. Ethereum Max is an ERC-20 token on the Ethereum blockchain, Coindesk noted. After speaking on a short clip about the token, Kardashian wrote:
"Are you guys into crypto?"
"This is not financial advice but sharing what my friends told me about the Ethereum max token!" the post added. She then placed various hashtags and the all-important "#ad" required to disclose the paid post.
Ethereum Max-Kim Kardashian Partnership: Star-Studded Promotional Blitz
Not only is Kim into the craze--albeit promotional frenzy--among popular celebrities. Floyd Mayweather also promoted Ethereum Max constantly, even wearing a T-shirt that bore the altcoin publicly and even bringing the topic of Ethereum Max in a Bitcoin 2021 Conference that did not sit well with attendees. Ethereum Max actually sponsored Mayweather's recent fight with Logan Paul. Even NBA legend Paul Pierce gave his own shout-out promoting the token.
But what is Ethereum Max, you may ask? Is this an upgrade to the world's second-largest cryptocurrency? Or is its new rival? For those who think this token will shake up the cryptocurrency world, it is not. Ethereum Max is actually as mentioned, an ERC-20 token or altcoin on the Ethereum network. Launched in May with a total supply of two quadrillon, Ethereum Max redistributes a share of its transactions to its community.
Ethereum Max: 'Mostly a Marketing Campaign'
However, even with the star-studded endorsements, experts view Ethereum Max an even more risky choice in a very volatile cryptocurrency market. Decrypt did not mince words in saying it is "mostly a marketing campaign." No white paper supports any strategy or provide any other information on the project, much less a professionally worded or grammatically correct press release. Likewise, only a few details about its developers are divulged.
Even with the star-studded backing, however, Ethereum Max (EMAX) dropped over 15 percent on Tuesday, Benzinga reported, although the altcoin still rose 30 percent over a seven-day period.
Although Kardasihan-West, Mayweather, and Pierce did not disclose any details about their promotional deals with Ethereum Max, the popular reality show star disclosed in a 2019 court filing that she can earn up to half a million dollars per Instagram post.
Ethereum Max: Experts Advise Investors to Remain Cautious
While the cryptocurrency market's volatility is a given, experts encourage investors to remain cautious over such pitches, even if they are from the most influential icons. They should do their own research before choosing where to invest their money, with the U.S. Securities and Exchange Commission warning in 2017 that "it is never a good idea to make an investment decision just because someone famous says a product or service is a good investment."