With the recent highs of Bitcoin and other cryptocurrencies, several companies are hiring influencers to promote their businesses.
The big problem is that these partnerships can be done in a hidden way, and deceiving those who have little knowledge of crypto.
As a result, France created a task force to combat promotion by influencers. The team has agents from two French agencies linked to consumer protection and the financial markets.
The best example of such a case is Kim Kardashian. As reported by TheCryptoBasic popular reality television personality, socialite, model, businesswoman, producer, and actress Kim Kardashian promoted a shady project through her social networks, called Ethereum MAX.
The celebrity influencer shared a story about EthereumMax with her 228 million Instagram followers. The stats showed that about 3 out of 10 crypto users were exposed to Kim Kardashian’s Instagram advertisement that promoted “Ethereum Max.” On such a massive push to a scam project Charles Randell, chairman of the FCA, vehemently criticized Kim Kardashian’s efforts to drive the dubious project in a keynote speech at Cambridge International Symposium on Economic Crimes.
Focus on cryptocurrency influencers
Top social networks influencers have thousands of followers, with no or little knowledge of the financial markets, they are the ready recipe to promote scam crypto projects.
Promises of quick profits, successful withdrawals, hidden partnerships, are the main lures of these promotions.
DGCCRF, the French body responsible for consumer protection and fraud prevention said:
“Influencers often promote highly volatile cryptocurrencies and financial products, and it becomes very difficult for newcomers to anticipate fluctuations.”
While influencers earn thousands of dollars due to their numbers of followers, their followers are the only ones taking risks. After all, these influencers’ lives will remain normal, even if their posts cause someone to lose everything they have.
Influencers take advantage of their follower’s lack of market knowledge. As published by Le Monde, France’s, Financial Markets Authority (AMF) believes that the greatest danger is lack of knowledge among young people blindly following any influencer.
“Social networks and influencers are the new gateways that have emerged in recent years. In this way, the target is a younger audience, who have very little knowledge of financial markets.”
The focus of this new task force is to reprimand these cryptocurrency influencers who promote deceptive content. Le Monde also highlighted the case of influencer ‘Nabilla Benattia-Vergara’, who was sentenced to pay a fine of 20,000 euros for secretly promoting a fake Bitcoin exchange.