EthereumMax (EMAX) has become a reminder for every cryptocurrency user to do their research and not invest in any digital asset simply because it was shilled or promoted by a celebrity.
EMAX plummets after lawsuit
Based on Ethereum, EMAX was created out of the frenzy in the non-fungible token, decentralized finance, and smart contract market. There wasn’t any clear information provided about the project. However, the creators were able to promote the token to crypto users via celebrity endorsements.
The popular pro boxer Floyd Mayweather is one of the celebrities that heavily promoted the EthereumMax project to his followers. Former NBA star Paul Pierce and reality TV star Kim Kardashian were also involved in the project. However, it all backfired in January 2022 as a lawsuit was filed against the three for their involvement in the token, which was dubbed “worthless.”
Defendants touted the prospects of the company and the ability for investors to make significant returns due to the favorable ‘tokenomics’ of the EMAX Tokens […] In truth, Defendants marketed the EMAX Tokens to investors so that they could sell their portion of the Float for a profit.The complaint.
EthereumMax lost 99% since ATH
Since the lawsuit was announced in January, EMAX has fallen by over 75% from the initial value of $0.0000000191 to $0.000000004686, according to Coinmarketcap. The token is down over 99.49% from the all-time high, with a 24hr-volume now at $2,992.
That wasn’t the first time project promoters have been sued for shilling worthless tokens. This should remind investors to take every token promotion with a pinch of salt and thoroughly research before investing in any cryptocurrency or digital asset.