A class-action lawsuit lodged with California Federal Court by a New York resident is seeking ‘all actual, general, special, incidental, statutory, punitive, and consequential damages and restitution’ along with a trial by jury, relating to the promotion of Ethereum Max cryptocurrency (EMAX)
EMAX is an ERC-20 token that is in no way affiliated with the second largest cryptocurrency, Ethereum (ETH). According to their , EMAX is ‘a unique token that provides lifestyle perks with financial rewards and incentives to its holders'
What happened?
EMAX engaged in an aggressive celebrity-based marketing push, enlisting well-known names such as ex Boston Celtics star Paul Pierce, boxer Floyd Mayweather Jr., and ‘influencer’ Kim Kardashian.
Former professional basketball player Pierce who enjoyed 19 seasons in the NBA tweeted on May 26 2021 in support of EMAX in a barbed statement against former employer ESPN, claiming to have ‘made more money with this crypto in the past month then I did with y’all in a year’
Former world champion boxer Floyd Mayweather Jr. advertised the cryptocurrency before his bout with YouTuber-turned-boxer Logan Paul in June 2021, donning an EMAX T-shirt to the weigh in, branded EMAX shorts during the fight, and offering EMAX as a payment method for tickets.
In what the Advertising Standards Agency in the UK branded as ‘the financial promotion with the single biggest audience reach in history’
Kim Kardashian posted about EMAX on her Instagram story, with a potential reach of over 250 million followers.
The value of EMAX rallied spectacularly with the celebrity promotions and endorsements, increasing by over 1,370% before crashing back to earth, ending with transactional volume of less than a hundredth of its initial capital.
What next?
Expect a lengthy and protracted battle between the multi-millionaires, their lawyers, and the plaintiff as they defend against the claim that they were integral parts of an elaborate pump and dump scam.
The rise and fall of Ethereum Max, along with the methods of advertising used, further strengthens Verify’s calls to all investors to ensure full due diligence is performed on every investment; DYOR has never been more important than in the digital age where celebrities hold huge audiences and influence over investors’ actions.
