Musk agrees to buy Twitter, Doge profits and Kim Kardashian is banned from crypto promotion

0

Last Updated on 5 October 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts

Elon Musk has finally decided to buy Twitter for the agreed price, it turns out, although Wall Street are certainly not completely convinced and think that this is a legal strategy. Anyway, crypto Twitter was very enthusiastic and especially Dogecoin got a bump when the news (European time) was announced yesterday evening. Earlier this year, Musk had proposed linking payments in Dogecoin to Twitter usage. Bitcoin moved back above $20k.

Another influencer was less fortunate. Kim Kardashian has to pay a multimillion-dollar fine for a crypto ‘pump-and-dump’.

Advertentie.

Kim Kardashian banned from promoting crypto for three years

A ‘pump-and-dump’ in crypto happens when a well-known influencer with many followers gets buyers to his digital currencies in order to inflate the price. If everyone buys then the holder of the most coins (who usually bought at the lowest price) can finally sell his coins at the highest point. So first it goes higher (the pump) and then suddenly much lower (the dump).

EthereumMax

It is a technique that given the crypto world a very bad name. Last year, when crypto was booming due to the high price of Bitcoin and other coins, none other than reality star Kim Kardashian, who has some 250 million followers on Instagram, suddenly started “pumping” a small coin by telling her followers that an unknown coin, called EthereumMax, had potential according to “friends of hers”. Kim was paid $250,000 for the post.

Kim said:

ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.

The promotion helped EthereumMax rise about 1,300% after Kim’s post. Problem is, in the following week, it also lost about 98% of it’s value at an even faster pace as the original ‘investors’ took their profits. All of Kim’s followers who invested, of course, lost most of their stake.

The American stock market watchdog (SEC) has now fined Kim Kardashian $1.26 million and the family will probably think twice before promoting another cryptocurrency for a fee. For the next three years she is forbidden to talk about it.

Via her attorney, she said:

Ms Kardashian is pleased to have resolved this matter with the SEC. Ms Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter. She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.