The crypto market is often compared to the Wild West. We have very little in the way of rules, regulations, and enforcement. Although many expect regulatory agencies to pipe up very soon, in the meantime, almost anything goes.
It seems like every day we hear about a pump and dump scheme where an influencer will buy a big bag of some alt-token, pump it up on their social media platforms, and then dump it for a profit. (In the world of stocks, this might be considered insider trading.)
One of the most popular pop culture icons, reality-TV personality Kim Kardashian is now being sued for allegedly taking part in such a pump and dump scheme involving the EthereumMax crypto-currency. Although it was implied in the name, there is no connection to Ethereum other than the fact that it’s an ERC-20 (Ethereum compatible) token.
Kardashian is now being sued along with boxer Floyd Mayweather Jr, basketball star Paul Pierce, and the token’s creators. Plaintiffs claim that the three celebrities collaborated with EthereumMax to “misleadingly promote and sell” the crypto-currency. The complaint alleges that “company’s executives, collaborating with several celebrity promotors” made “false or misleading statements to investors about EthereumMax, through social-media advertisements and other promotional activities.”
It’s claimed that all three defendants told investors they would make “significant returns” if they bought the coin. And of course, the price went up by over 1,300% before plummeting to an all-time low.
Grab some popcorn and get comfortable. It will be interesting to see how this case plays out and what effects it will have on regulatory debates.
GNOX token, designed to be pump-and-dump-proof
While we wait for that, there’s another altcoin that we want to mention that is designed to avoid this type of situation. It’s called GNOX token. It’s the native cryptocurrency of a new DeFi platform that has been developed to provide investors with a safe haven and high returns on their money. We’re not talking about too-good-to-be-true returns. We’re talking about reasonable and consistent returns that compound over time.
Gnox is being billed as a “yield farming as a service” platform. That means that all investors have to do is buy and hold GNOX tokens to take advantage of an array of yield farming opportunities that are vetted by experienced DeFi analysts.
The way it works is a portion of the coins purchased are put into a treasury. Those funds are then invested into a diversified basket of yield-producing opportunities such as staking and lending platforms and liquidity pools that provide passive income.
Periodically, funds are harvested from these investments and then used to buy back and burn GNOX tokens. This decreases the supply and increases the value of tokens held by investors.
Moreover, a 1% “tax” on all transactions is redistributed to current holders every 60 minutes. If someone decides to dump a large bag of GNOX tokens, someone will get a good deal on them while everyone else’s tokens become more valuable making it near impossible to use the token in a pump and dump scheme.
The Gnox platform launches on July 18th. However, the ICO presale is currently ongoing and is already earning early adopters returns as high as 52%. The presale ends July 12th. Visit Gnox’s website to learn how to get in on the presale.
And be careful of celebrity crypto pumpers. Know that their advice will generally benefit them more than it will benefit you.
Learn more about Gnox:
Join Presale: https://presale.gnox.io/register
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