According to a recent study, over 30% of TikTok videos on crypto investments are misleading, potentially exposing unwary viewers to financial risk. The study analyzed over 1,161 TikTok videos with popular crypto-related hashtags, such as crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading, and cryptoinvesting, and found that more than one in three of these videos contained misleading information about Bitcoin and other cryptocurrencies.
TikTok has become a popular platform for the younger generation, offering a video-based alternative to traditional Google searches. However, some influencers on the platform have been found to share unvetted misinformation about crypto investments, often attempting to convince viewers to put their hard-earned money into loss-making cryptocurrencies.
Out of the analyzed videos, only 1 in every 10 accounts or videos contained a disclaimer warning users about the risk of investments. Meanwhile, 47% of TikTok creators were found to be pushing services to make money. Mainstream influencers, such as Kim Kardashian, Jake Paul, and Soulja Boy, have also been accused of promoting cryptocurrencies to their millions of fans without disclosing payments received.
The United States Securities and Exchange Commission recently forced Kim Kardashian to pay $1.26 million in penalties for promoting EthereumMax (EMAX) without disclosing the payments received. While TikTok influencers have a smaller reach than their mainstream counterparts, the potential financial risk for unwary investors remains equally high.
The research found that 1 in 3 misleading videos on TikTok mention Bitcoin. The videos with the popular crypto-related hashtags have cumulatively churned over 6 billion views. However, viewers often overlook the ill-intent of their favorite influencers and trust their content purely based on the high number of views or likes.
Both new and seasoned investors are advised to do extensive research on crypto projects prior to making any form of investment. It is crucial to verify the sources of information and be skeptical of anything that appears too good to be true.
The recent $1 billion lawsuit filed against crypto exchange Binance, its CEO Changpeng “CZ” Zhao, and three crypto influencers for promoting unregistered securities is a reminder of the potential risks in the crypto industry. The lawsuit alleges that “millions” of people could be eligible for damages, highlighting the importance of caution and due diligence when investing in the crypto market.
In conclusion, the findings of the study suggest that there is a significant risk of misinformation on TikTok related to crypto investments. Viewers should be wary of blindly trusting influencers and conduct their research before making any investment decisions. The crypto industry is still in its early stages, and it is crucial to approach it with caution and skepticism.