Crypto, cryptok, cryptoadvice, cryptocurrency, crypto trading, and crypto investment have garnered over 6 billion views on TikTok.
A recent study found that more than one-third of TikTok influencers, the most popular social media platform among young people, post misleading videos about Bitcoin and cryptocurrency investments.
TikTok has been extensively adopted as an alternative to Google searches based on videos. However, some influencers have been found to spread unverified misinformation about crypto investments on social media platforms, often attempting to persuade unwary viewers to invest their (or their parents) hard-earned money in loss-making cryptocurrencies.
TikTok influencers use the hashtag ‘#cryptok’ when publishing crypto-related content. dappGambl’s analysis of more than 1,161 crypto-related TikTok videos revealed that more than one-third of them were misleading.
The research also revealed that only one out of every ten Cryptok accounts or videos included a disclaimer warning users about the risk of investments.
47% of TikTok creators were discovered to be attempting to promote services for financial gain.
Kim Kardashian Jake Paul, and Soulja Boy, among others, were previously accused of promoting cryptocurrencies to their millions of admirers without disclosing any compensation received.
Kim Kardashian was fined $1.26 million by the United States Securities and Exchange Commission for her promotion of EthereumMax (EMAX).
Even though TikTok influencers have a smaller reach than their mainstream counterparts, the financial risk for unwary investors remains high.
The research also revealed that one in three misleading TikTok videos mentions Bitcoin.
Moreover, videos on TikTok with prominent crypto-related hashtags, such as crypto, cryptok, crypto advice, cryptocurrency, crypto trading, and crypto investing, have amassed over 6 billion views collectively.
Viewers frequently disregard the malicious intent of their favored influencers and end up trusting their content based solely on the number of views or likes.
Before making any form of investment, both novice and seasoned investors are advised to conduct extensive investigations into cryptocurrency initiatives.
The crypto exchange Binance, its CEO Changpeng “CZ” Zhao, and three crypto influencers were sued on April 2 for promoting unregistered securities.
The complaint filed by the Moscowitz Law Firm and Boies Schiller Flexner states, “This is a classic example of a centralized exchange that is promoting the sale of an unregistered security.”
As previously reported, the lawsuit asserts that “millions” of individuals may be eligible for compensation.
