Influential YouTuber and crypto analyst Logan Paul has become the subject of criticism over an alleged misleading promotion of a project. According to various sources, including the BBC, Paul is being accused of being involved in a dump and pump scheme – an illicit act done to fraudulently inflate the price of cryptos for insiders to gain at the expense of other investors.
In a report, BBC showed evidence which illustrated how Logan Paul promoted crypto investments without revealing his financial involvement. This, according to sources, raises questions about the credibility of the projects he endorsed for his audience. Similarly, the controversy heightens concerns about transparency and ethical behavior demonstrated by financial influencers in recent years.
Due to his vast audience base, Logan’s advertisement of those crypto projects often lead to broad adoption. When this happens, the projects experience parabolic price pump, enabling him and other insiders to benefit massively. In the end, those who join the investment late are left at disadvantage, enduring the large corrections that followed the spike.
Logan Paul embroiled in a multimillion dollar lawsuit
Don’t forget that Logan Paul is still embroiled in a multi-million dollar lawsuit due to the collapse of his CryptoZoo venture. At the start, the project promised to reward early backers investing their assets. However, it could not fulfill the promise made, leading scores of investors with losses. While Logan has denied any wrongdoing, the lawsuit seemed to have gathered waves in the past months.
Apart from Paul Logan, a few other popular personalities like Olympic Gold medalist Caitlyn Jenner are also facing legal action over misleading promotion of crypto investments. Investors claimed Jenner misled them to buying a crypto coin named after her – Jenner. The lawsuit was filed at the California federal court, accusing the celebrity and her manager from selling unregistered securities. Last year, eight different celebrities including Jake Paul were dragged to court for involvement in crypto scam.
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