The latest survey has disclosed comprehensive details about the outward inclination of the retail investors regarding seeking advice from the influencers and celebrities’ social media portfolios. As per a survey conducted by Morning Consultant consisting of 2,200 adult citizens of the United States, 45% of the respondents who hold crypto signaled that they would seemingly pursue crypto-asset exposure if a celebrity endorses it, while the opposing was only 20% in comparison.
Some more encouraging results were also indicated by the survey as the crypto investors’ three quarters mentioned that they would seemingly invest as per the recommendation of a friend or family member, whereas 81% were of the view that they would make the investment after being influenced by the advice of a “financial-advisor.” Roughly 20% of the entire respondents, as well as crypto owners’ one-third, stated being aware of the post that Kim Kardashian published in the early period of June on her Instagram account, which advocated the EMAX (Ethereum Max) token named ERC-20.
A surprising 19% of the participants admitted having their money invested in that token after seeing the ad on Instagram. Nonetheless, they were making only 3.8% of the total sample. The project, along with its post, has been entangled in controversy since then. After its announcement on 26th May, the price of the unique crypto witnessed rapid growth. Before the announcement, the token had been traded at nearly $0.00000000073; however, this grew to more than $0.00000085 by 1st June, having earned about 116,000% in only a week.
In the two weeks, when about 99% value of the token Ethereum Max was dropped, Kardashian shared a post with her followers (who are across 250M) on 13th June that approximately half of the EMAX tokens held by the admin wallet of the project had already been burned. This was the maneuver that added up to 3,000% profit in the revenue of the platform as it was lifted from being at $0.000000076 to $0.000000235 by the 14th of June. But after mid-June, a consistently downward trend has been witnessed, which has placed it at $0.000000021 (a 91% decrease from its local highs).
The financial regulators noticed the incident, and Charles Randell (the Financial-Conduct-Authority’s head under the U.K.) categorized the respective post to be possibly the sole financial promotion reaching the biggest audience in history.