fter tv personality Kim Kardashian was fined for boosting the cryptocurrency EthereumMax, the crypto community responded with a mix of surprise and amusement (EMAX).
On October 3, the SEC fined Kim $1.26 million for "touting on social media" about the EMAX without revealing she was paid $250,000. She has not conceded or denied the allegations but has resolved and accepted not to advertise any cryptocurrency investments until 2025.
According to SEC Chairman Gary Gensler, the fine is a reminder that celebrity sponsorship of investment options does not imply that those investment products are suitable for all investors.
Following Gensler's tweet, the online cryptocurrency community weighed in on the fine, with some criticizing it for its inconsistent enforcement decisions.
Economist Peter Schiff, known for his anti-Bitcoin (BTC) stance, criticized it for not fining MicroStrategy co-founder Michael Saylor, whom he believes has more to gain from pumping crypto.
Saylor responded that Bitcoin is a commodity, not a security, that boosting it would be similar to promoting steel or granite, and that the coin's open protocol provides utilitarian beliefs comparable to roads.
Layah Heilpern, a crypto-personality and author, stated that the SEC has more significant issues closer to home. It should probably focus on implying the widespread belief in the group that certain U.S. politicians have inside traded.
The SEC's heavily loaded treatment of crypto promotions from public figures, while crypto-centric endorsers have been out here shilling you junk for 0.2 ETH per tweet, was highlighted by pseudonymous developer 0xBender.
Others, such as the former federal prosecutor Renato Mariotti, warned that the regulator is displaying it will vigorously pursue enforcement actions and that those who promote cryptocurrency without considering the laws will need to find a good lawyer.
Meanwhile, Ethereum educator and investor Anthony Sassano stated to his followers that he believes the SEC targeted Kardashian because it gives the impression that the regulator is taking action against crypto scams and that it should have targeted the creators of EMAX instead.
Despite this, some saw the bright side of investing in a volatile and highly speculative crypto token, with journalist Tyler Conway claiming that the star got the whole crypto experience by losing more money than she was paid.
According to Marcus Hutchins, a self-described hacker and tech content creator, Kardashian would have gotten better returns in EthereumMax, which has dropped 97% since her post, compared to the -80% the promotion handed back to her.
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