EthereumMax (CCC:EMAX-USD) is in the news today as the crypto faces scrutiny alongside a new lawsuit targeting celebrity promoters.
Kim Kardashian and Floyd Mayweather are facing a class-action lawsuit from investors in EMAX. The lawsuit alleges that they took part in a pump and dump scheme with their promotions of the crypto.
In the case of Kardashian, she promoted EthereumMax in an Instagram post. The celebrity made sure to tag the post as being an ad, but it’s unknown how much she was paid to promote the crypto.
When it comes to Mayweather, he promoted the crypto in his bought with Logan Paul. The crypto was also able to be used for purchasing tickets to the event. The boxer didn’t reveal if he was paid to promote the crypto or not.
In either case, traders that bought into the crypto during the hype from these two celebrities claim they suffered losses by investing in it. It’s worth noting that EMAX has dropped almost 87% since Mayweather’s match against Paul in June 2021, reports CNBC.
Keeping that in mind, here’s a few quick facts about EthereumMax.
- First off, despite the name EMAX isn’t connected to Ethereum (CCC:ETH-USD).
- Instead, it’s an ERC-20 token built on the Ethereum platform.
- That means users can’t code other applications on EthereumMax.
- It’s also worth highlighting that the token was only launched in May 2021.
- The stated goal for the crypto was to become a culture token.
- However, it’s failed to do that and has faded into obscurity without celebrity endorsements.
- That’s part of the reason that some believe it to be a pump and dump.
EMAX is up 3.7% over the last 24 hours as of Wednesday morning.
Crypto traders looking for more stock market news will want to keep reading!
We’ve got all the most recent coverage that investors in the crypto space need to know about. That includes all the latest news concerning Marathon Digital (NASDAQ:MARA), Decentraland (CCC:MANA-USD), and Cardano (CCC:ADA-USD). You can find all of that by following the links below!
More Wednesday Crypto News
- For Better or Worse: Marathon Is a Levered Bet On Bitcoin
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
