Max Pain

Yesterday the SEC released a statement that they had fined Kim Kardashian $1.26 million (and not for being fabulous). Celebrity shills are nothing new, but it is interesting to observe the SEC widening their net and ramping up activities.

• In June last year, Kim Kardashian promoted Ethereum Max to 250 million followers on her Instagram.
• Using #EMAX, the reality star claimed she was sharing what her “friends just told” her about the Ethereum Max token.
• Despite also using #ad, she did not disclose a payment of $250,000 to promote it. This was a key reason why the SEC took action.
• EMAX tokens lost more than 95% of their peak value, mostly within six weeks of the post being made. A general market turndown has not helped to reverse fortunes.
• The SEC said the fine had been accepted and Kardashian would not promote any ‘crypto asset securities’ for three years.
• This is the latest example of a pro-active SEC looking to send a message. Whether you are a regulated company (Coinbase), a decentralised entity (Tornado) or a private individual, you are subject to the scrutiny of the regulator.

So, if you see anyone you respect or admire advocating for something, first ask yourself: why are they fundamentally doing this?