Over 30% TikTok Videos About Crypto Investments Are Misleading: Research
More than 1 in 3 influencers on TikTok, the popular social media platform for the young generation, have been found to post misleading videos about Bitcoin (BTC) and cryptocurrency investments in a recent study.
TikTok has been widely adopted as a video-based alternative to Google search. However, some influencers have been found to share unmonitored misinformation on the social media platform about crypto investments, often trying to convince unwary viewers to put their (or their parents’) hard-earned money into loss-making cryptocurrencies.
TikTok influencers use the hashtag ‘#cryptok’ while posting crypto-related content. An analysis of over 1,161 such TikTok videos – conducted by dappGambl – showed that over one in three videos on crypto-TikToks were deceptive. The survey also found that only 1 in 10 crypto accounts or videos contained some form of disclaimer warning users about the risks of investing.
Out of the lot, 47% of TikTok creators were found trying to push services to make money. Mainstream influencers including Kim Kardashian, Jake Paul and Soulja Boy were also previously accused of promoting cryptocurrencies to their millions of fans without disclosing payments received.
The United States Securities and Exchange Commission forced Kim Kardashian to pay $1.26 million in fines for promoting EthereumMax (EMAX). While TikTok influences have a smaller reach than their regular counterparts, the potential financial risk for unwary investors is still just as high.
The survey also found that 1 in 3 deceptive videos on TikTok mention Bitcoin. Also, videos on TikTok with popular crypto-related hashtags — such as crypto, kryptok, crypto advice, cryptocurrency, crypto trading, and crypto investing — have cumulatively garnered over 6 billion views.
Viewers often overlook the bad intent of their favorite influencers and end up trusting their content solely based on the high number of views or likes. Both new and experienced investors are advised to do extensive research on crypto projects before making any kind of investment.
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Related: How a TikTok ban in the US could affect the crypto industry
On April 2, a $1 billion lawsuit was filed against crypto exchange Binance, its CEO Changpeng “CZ” Zhao and three crypto influencers for promoting unregistered securities.
“This is a classic example of a centralized exchange promoting the sale of an unregistered security,” the lawsuit filed by the Moscowitz Law Firm and Boies Schiller Flexner states.
As Cointelegraph reported, the lawsuit claims that “millions” of people could be eligible for damages.
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