Non-fungible tokens are all the new rage that is going on in the world this time. More and more people are actually trying to understand the game of NFTs as it is the new trend that is taking the world by storm.
However, not all tokens are trustworthy since there have been some cases where people have been tricked into investing for NFTs that don’t have much value for sure.
Well, according to the best crypto news today, a newly proposed class action has made an allegation that SafeMoon has managed to recruit different celebrities in order to lure certain investors with the help of different misleading promotions for the betterment of the NFT in the first place.
The whole world is shocked by the news since a huge number of A-list celebrities are mentioned in the list of people who are being sued along with SafeMoon.
A properly new class-action lawsuit that has been set against SafeMoon actually demands to have a jury trial for all the different A-listed celebrities as well as the social media influencers who were the alleged participants in the very own classic pump and dump scheme that was related to the tokens of SafeMoon. Since there is a pretty huge number of important people who are dragged into the mess, there is still some speculation on whether the jury trial will take place or not.
SafeMoon is a Binance Smart Chain native cryptocurrency that has reportedly recruited a huge number of important people and celebrities in order to lure unsuspecting investors into promotions that are misleading in nature.
Some major names belonging to the entertainment industry are included in the list of celebrities such as Nick Carter, Lil Yachty, and Soulja Boy. Not just that but some of the majorly big names in the YouTube industry are also included such as Ben Phillips and Jake Paul. These people have been roped in properly by this new class-action lawsuit that has been set forth for SafeMoon.
Lawsuit Wraps in Different Celebrities for Supporting SafeMoon
According to this particular lawsuit, SafeMoon as well as the subsidiaries actually mimicked certain Ponzi schemes that were pretty much real and offered misleading promotions to the investors in order to ensure that they are purchasing the tokens of SafeMoon under the pretext of providing unrealistic profits.
Citing the ecosystem’s ‘burn’ and ‘tokenomics’ as a key driver for SafeMoon’s price potential, the recruited celebrities allegedly convinced their followers to invest in the token.
Apart from that, it is also pointed out by the lawsuit that there were different instances in which the celebrities that were recruited by SafeMoon actually hyped up the token and ended up artificially increasing the price as well as the trading volume.
While SafeMoon witnessed multifold growth over several months, the sudden departure of the company’s C-suite executives was when the token prices started plummeting.
The lawsuit alleges a ‘slow rug pull’ attempt from the involved celebrities, implying a slow sell-off of holdings as the trading volume from retail investors remains inflated: “The Promoter Defendants’ improper promotional activities generated the trading volume needed for all the Defendants to offload their SAFEMOON Tokens onto unsuspecting investors.”
Drafted by plaintiffs Bill Merewhuader, Christopher Polite, and Tim Viane, the lawsuit looks to represent and compensate all individuals who bought SafeMoon tokens since March 8, 2021, and were victims of the alleged rug pull attempt.
One of the biggest highlights of Super Bowl 2022 was the crypto commercials. Amid the craze around the advertisements, crypto exchange Binance launched a marketing campaign to warn investors against the incoming crypto hype fueled by mainstream celebrities.
As it has been reported by Cointelegraph, the main goal of Binance with this particular campaign was to point the new users to its very own platform. It also wanted to point the users towards the different educational crypto primer tools on the website that it had.