Report claims social media influencers are promoting scam cryptocurrency projects and get highly paid for sponsored videos

CNBC analysts surveyed influencers promoting crypto coins through YouTube videos. One of the leading cryptomarket influencers, Ben Armstrong, looks in a repenting mood as he feels through his channel that many people lose their money by investing in fraudulent crypto projects.

The influencer with exceeding 1.5M channel subscribers says he has been accepting thousands of dollars for touting products of crypto enterprises. He used to make videos encouraging people to invest in the schemes that would ultimately give huge profits to investors. Unfortunately, he became the part of a fraud and caused many people to lose their assets. Two years before, Armstrong disclosed his collaboration with a crypto coin whom he declared trustworthy, called DistX. When making videos on DistX, he informed his audience about how this coin is the most legitimate and how it helps stop crypto scams. Later on, the project itself was found to be a scam. The scammers were only interested in amplifying the market cap and vanished from the front, leaving investors in the lurch. Right now, the DistX value is entirely down (99%), meaning worthless.

Armstrong told CNBC he got over thirty thousand dollars for a single promotion of the crypto project, DistX, and could generate an amount of +$100.000 monthly in endorsements exclusively. Armstrong feels guilty for causing loss to his audience, and now he says from January, he has stopped making paid promotional videos. In addition, he told the money he received from the promotion of DistX, he would refund to his followers who lost their money due to investing on his advice. Armstrong also said that Armstrong doesn't know much about finance as he isn't an expert professional, and many crypto coins have crashed. When Ethereum Yield and MYX Network lost value, he removed all of his promotional videos on YouTube related to it.

CNBC found that a blockchain detective published a list on Twitter mentioning 44 crypto influencers and how much they charge for paid videos. Among those, some influencers were paid sixty-five thousand dollars for a single promotion. Armstrong also revealed that the crypto companies offering paid promotions for their product ask him not to disclose to his subscribers that the video is sponsored.

Armstrong's opinion about paid promotions is praiseworthy as he says that videos' content should be honest and not sponsored. Because if the followers lose their money due to fraud, that burden won't make him happy.

In the end, regulators need to pay attention to digital assets efficiently because there are more hidden crimes to be acknowledged.

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