Kim Kardashian has one of the largest social media followings in the world, so her posts carry weight. Her statements related to EthereumMax<\/a><\/u>, a digital token, have resulted in a lawsuit. The lawsuit alleges that Kardashian\u2019s statements about EthereumMax (EMAX) were \u201cfalse and misleading\u201d and led investors into a \u201cpump and dump\u201d scheme.<\/p>\n Brooklyn, New York resident Ryan Huegerich and other plaintiffs filed the lawsuit. They claim that Kim Kardashian, Floyd Mayweather, and another celebrity scammed them into buying EMAX tokens by<\/p>\n What did Kardashian Do?<\/strong><\/p>\n In June 2021, Kardashian posted a message on her Instagram that read \u201cAre you guys into crypto?\u201d with the disclaimer language \u201cthis is not financial advice.\u201d Kardashian\u2019s post mentioned she was sharing what her friends told her about the EthereumMax token. She included the \u201cAD\u201d (paid advertisement) hashtag.<\/p>\n At the time of her EMAX token post, Kardashian had over 250 million Instagram followers. Kardashian typically earns anywhere from $500,000 to $1 million per sponsored Instagram post. Although the precise amount she received to promote EthereumMax is unknown, estimates are that she received an amount in this range.<\/p>\n The other celebrities subject of the EthereumMax lawsuit include former professional boxer Floyd Mayweather Jr. and former professional basketball player Paul Pierce.<\/p>\n In 2021, Mayweather touted the benefits of investing in EthereumMax while chatting with a YouTube celebrity at a boxing match. In May 2021, Pierce promoted EthereumMax on his Twitter account. The post, which also referred to a conflict between Pierce and ESPN, stated: \u201c@espn I don\u2019t need you. I got @ethereum-max I made more money with this crypto in the past month then I did with y\u2019all in a year.\u201d As former NBA player, Pierce worked as a sports commentator and the tweet attracted widespread attention.<\/p>\n EthereumMax Value Nosedives After Soaring Following Kardashian Promotion<\/strong><\/p>\n Since early June, EthereumMax has lost around 97% of its value. The plaintiffs have accused Kardashian and the other celebrities of artificially inflating the cryptocurrency\u2019s price through social media. After the celebrity promotions, EthereumMax increased in value by more than 1,300%. The effects didn\u2019t last long. The coin\u2019s price plummeted to an all-time low just a month after the price spike. The plaintiffs claim that Kardashian and others offloaded their holdings before the massive price drop and earned significant profits.<\/p>\n Despite the name similarities, EthereumMax is not related to Ethereum<\/a><\/u>, the second-largest cryptocurrency after bitcoin. The lawsuit also claims that branding the crypto with \u201cEthereum\u201d as part of its name intentionally deceived investors.<\/p>\n