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'Finfluencer' Jake Paul claims poverty on crypto crash

By Daniela Ešnerová

04:44, 28 June 2022

Jake Paul in a boxing match
'Finfluencer' Jake Paul clams poverty on crypto crash - Photo: Shutterstock

A social media influencer Jake Paul, who has once promoted, among other cryptocurrencies, is ‘poor’ following the crypto crash, while Tesla founder Elon Musk was hit with a lawsuit for having promoted the dog-themed meme-coin. 

What does the crypto crash aftermath look like for celebrity influencers?

Jake Paul, a social media personality who vocally supported BTC, DOGE and other coins is reportedly “poor” after the cryptocurrency market crash, Logan Paul, his older brother and social media personality, said during his podcast Impaulsive earlier this month. 

BTC to US dollar 

Both rose to fame through posting rank videos on social media, initially in Vine and then YouTube. The Pauls amassed tens of millions of fans on social media.

Both brothers engaged in exhibition boxing fights, with the younger Paul fighting fellow YouTuber, former basketball player and two retired MMA fighters. 

Meanwhile, Logan Paul faced a former five-division world champion Floyd Mayweather, who is 16 years his senior and below his weight classes, in an exhibition match.

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'Put all his money in crypto'

Speaking during his podcast, Logan Paul first took a jab at his brother’s “boxing career”. His co-hosts opposed him, saying: “It’s [Jake Paul’s boxing career] going pretty well, he won every fight he’s done,” and “He made like $40m last year.” 

"It doesn't matter,” Logan Paul countered, “he put it all in crypto! He's poor!”. 

SOL/USD

180.34 Price
-1.770% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

ETH/USD

3,494.82 Price
-0.200% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.14 Price
-2.300% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

67,451.05 Price
-0.530% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Logan Paul then went to reveal that he himself lost $500,000 in the wake of the crypto crash which has seen huge amounts of value wiped from the likes of ETH, SOL and TRX as well as bitcoin itself.

ETH to US dollar

The killing moon?

Jake Paul has become subject to criticism for advertising to his young, impressionable fans. 

Earlier this year, Jake Paul was targeted in a class action for having promoted cryptocurrency SafeMoon.

Meanwhile, the self-proclaimed “doge-father”, South Africa-born entrepreneur Elon Musk,  was hit with a suit for having promoted DOGE.. 

DOGE to US dollar

"Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading," the complaint reads. 

"Musk used his pedestal as World's Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement."

The role of finfluencers has come under scrutiny from Asia Pacific regulators with the Monetary Authority of Singapore telling Capital.com saying they needed to comply with disclosure rules.

Markets in this article

BTC/USD
Bitcoin / USD
67451.05 USD
-358.75 -0.530%
ETH/USD
Ethereum / USD
3494.82 USD
-7 -0.200%
SOL/USD
Solana / USD
180.3434 USD
-3.2228 -1.770%
TRX/USD
TRON / USD
0.13764 USD
0.0008 +0.600%
DOGE/USD
DogeCoin / USD
0.1384016 USD
-0.0032445 -2.300%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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