Reported by: Danny Nelson

Kim Kardashian’s $1.26 million regulatory fine this week for improperly touting a cryptocurrency raises many questions, but a big one is this: what the heck is EthereumMax (EMAX), the token she shilled?

Though the name begins with Ethereum, it’s not the second-largest cryptocurrency, but rather a token built on top of it. Like many cryptocurrencies, it promises to reshape the future of finance in hyperbolic terms. It screams that vision to the world with flashy ads and sidewalk spray paint stencils that implore readers to buy in.

Any investor who read EthereumMax’s grand plans for inking deals that “drive value” into EMAX or heard its promoters predicting price pumps would have the “reasonable expectation” of making money, the Securities and Exchange Commission (SEC) said Monday. In other words, EMAX is a security.

While the SEC doesn’t have a mandate for crypto, its top brass believes the vast majority of digital assets are securities they can regulate like stocks or bonds.

Read full report: https://www.coindesk.com/business/2022/10/03/what-is-ethereummax-inside-the-crypto-kim-kardashian-lost-12m-promoting/?outputType=amp