Key Opinion Leaders (KOLs) in the digital collectibles industry face significant legal risks, particularly if they engage in promoting fraudulent projects. According to a report, KOLs can be classified as co-conspirators in fraud cases if they knowingly or recklessly endorse such projects. High-risk behaviors include false advertising, promising guaranteed returns, and involvement in Ponzi schemes.
To mitigate these risks, KOLs are advised to conduct thorough due diligence on the legitimacy of projects they promote. They should avoid performance-based compensation and ensure clear contractual boundaries with project teams to maintain compliance and protect themselves legally.
Legal Risks for KOLs in Digital Collectibles Promotion Highlighted
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