has become a hit with the younger generation, has been found to be home to a large number of influencers sharing misleading videos about cryptocurrency investments.
A recent study has revealed that over 1 in 3 influencers posting videos about cryptocurrency on the platform have been found to be sharing false information with their viewers.
The study analyzed over 1,161 videos on crypto-related topics posted on TikTok using the hashtag ‘#cryptok’, and found that a large number of them contained inaccurate or unverified information. Many of these videos attempted to convince unsuspecting viewers to invest in cryptocurrencies without providing the necessary disclaimers or warnings about the risks involved.
The research also found that only 1 in 10 cryptok accounts or videos contained a disclaimer that warned viewers about the potential risks of investing in cryptocurrency. Furthermore, over 47% of TikTok creators were found to be trying to push services that would help them make money.
Jake Paul, and Soulja Boy have been accused of promoting cryptocurrencies to their millions of fans without disclosing the payments received. In fact, Kim Kardashian was recently forced to pay $1.26 million in penalties for promoting EthereumMax (EMAX) by the United States Securities and Exchange Commission.
While TikTok influencers may have a smaller reach than mainstream influencers, the potential financial risks for unwary investors remain high. The study found that 1 in 3 misleading videos on TikTok mention Bitcoin, and videos using popular crypto-related hashtags such as ‘crypto,’ ‘cryptok,’ ‘cryptoadvice,’ ‘cryptocurrency,’ ‘cryptotrading’ and ‘cryptoinvesting’ have collectively generated over 6 billion views.
In light of these findings, both new and seasoned investors are advised to conduct extensive research on crypto projects prior to making any investments. It is important for viewers to not blindly trust their favorite influencers and to be aware of the risks involved in cryptocurrency investments.
Finally, it is worth noting that 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 highlights the need for greater caution when it comes to investing in cryptocurrency, particularly in the context of social media platforms.
