According to a recent study, more than 30% of TikTok videos about cryptocurrency investments are possibly misleading or contain inaccurate information. According to the report, more than one out of every three influencers on TikTok, the go-to social media site for the young population, have posted deceptive videos regarding Bitcoin.
TikTok floods with crypto investment deception
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.
The research findings have raised concerns about the potential hazards that investors face when using social media platforms such as TikTok. Experts have cautioned investors to exercise prudence when making investment decisions and to consult with qualified financial advisors.
The study serves as a timely reminder that investors must be vigilant when investing in crypto and should not rely solely on social media platforms for information. Before making investment decisions, they should seek advice from qualified professionals and do their own research.
Details of the research findings
47% of the platforms creators were discovered attempting to push services in order to make money. Mainstream influencers such as Kim Kardashian, Jake Paul, and Soulja Boy have already been accused of promoting cryptocurrencies to their millions of fans while failing to disclose money received.
According to the study, one out of every three deceptive videos on the platform mentions Bitcoin. Furthermore, videos on TikTok with popular crypto-related hashtags like crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading, and cryptoinvesting have received over 6 billion views.
Viewers frequently overlook their favorite influencers’ bad intentions and end up accepting their content solely based on the number of views or likes. Before making any type of investment, both novice and experienced investors should conduct extensive research on crypto ventures.
According to the survey, the deceptive content creators studied had a combined following of more than 35 million, with an average following of 145K. Because Tiktok prioritizes popular material over fact-checked content, even people who do not follow the accounts can see these videos through the for you tab or by searching the hashtags.
Scams perpetrated by crypto influencers and crypto celebrities are on the rise. On April 2, a $1 billion lawsuit for promoting unregistered securities was lodged against crypto exchange Binance, its CEO Changpeng “CZ” Zhao, and three crypto influencers.
Kim Kardashian was fined $1.26 million by the United States Securities and Exchange Commission for her promotion of EthereumMax (EMAX). Despite the fact that TikTok influencers have a smaller reach than their mainstream counterparts, the financial risk for unwary investors remains high.
FAQs on using TikTok for investment
1. Can you rely on TikTok for investment advice?
Although the platform can be a great place to learn, it is essential to keep in mind that cryptocurrencies are unregulated, and misinformation can spread quickly. Always do your own research before relying on the platform’s recommendations.
2. How can you spot a scam on TikTok?
TikTok is designed to recommend videos to users who are interested in them. If a user is interested in crypto content, the For You page is likely to display crypto-related videos. However, it is essential to consider that no one can guarantee returns. If something seems too wonderful to be true, it probably is.
3. What should you look out for while watching TikTok crypto videos?
The fact that a video has tens of thousands of likes and views does not make the content authentic and reliable. If a creator is promoting his or her own advice or services, he or she likely has an ulterior motive to produce viral content. Extra caution should be exercised when accessing paid services.
4. Why is crypto content so popular on TikTok?
There are several explanations why cryptocurrency and investment-related content is so popular on TikTok. The platform’s predominantly youthful user base is becoming increasingly interested in their personal finances and future financial planning.
Additionally, the short-form video format of TikTok makes it simpler for users to ingest and comprehend crypto content. In recent years, the buzz surrounding stock trading, cryptocurrencies, and other investment opportunities has also contributed to the prevalence of such content.
