How to Avoid Getting Scammed In Crypto
Lessons learned from Kim Kardashian, EthereumMax and the rise of “influencer crypto”
On Monday June 14, 2021, Kim Kardashian joined the long list of celebrities to brazenly shill a shitcoin called ‘EthereumMax’.
Don’t let the name fool you.
This coin had literally nothing to do with Ethereum.
It’s creators simply used a bigger name to mooch credibility and brand recognition at a glance — a common tactic used by pump & dumpers. By sticking a viral event or another popular cryptocurrency in the name of their token, shitcoin creators increase their chances of capturing the hard-earned cash of FOMO-fuelled investors (see: Squid Game Token)
So, what happened to EthereumMax? And how can investors use the following story to avoid getting scammed in the Wild West of crypto?
EthereumMax (EMAX): A Brief History
EthereumMax grabbed international headlines after Kim Kardashian posted a carefully worded Instagram story, saying that her “friends” had just told her about a community-oriented token called EthereumMax, complete with the hashtags: #ad & #disrupthistory.
The price of EMAX surged briefly in response to the wide-scale attention. And then, it did exactly what all tokens with no underlying value inevitably do: it plummeted over 90% and stayed there.
While it may seem glaringly obvious to most investors that this was a rug pull waiting to happen, who knows how many unsuspecting, crypto-illiterate Kim Kardashian fans lost money in this?
As the price continued on it’s vicious descent, articles and social media posts warning of these schemes were everywhere, telling investors to “do their own research”. The obvious problem with these vague instructions, is that not everyone knows how to do their own research.