TL;DR Breakdown
- TikTok places embargo on crypto promotion advertisement
- Promotion of other financial product also banned by TikTok
- Despite ban, Dogecoin can still be pumped on TikTok
Popular picture and video sharing social media app, TikTok has placed a ban on crypto Promotion advertisements. It means that influencers on the platform would not be able to promote crypto ads anymore.
TikTok introduced the crypto promotion advertisement ban quietly this week when it restricted what it describes as “branded content,” or paid advertisements.
Branded content are a popular thing on the platform especially in sort videos users upload to the app, often with the hashtag #ad and a link to the promoted product.
Beyond Crypto promotion advertisement, TikTok placed a ban on promoting other financial products, such as loans, credit cards, forex trading, get-rich-quick schemes and penny auctions.
The move comes as a surprise especially when the platform played a huge role in the rise of several meme cryptocurrencies, including Dogecoin and Shiba Inu. The algorithm of the platform engages playful content that resonates with young investors.
The Social media app claims the move is to end the increasing rate of crypto-related and other investment scams and schemes promoted on the social network.
TikTok’s ban only extends to branded content where there’s a direct commercial relationship. There’s no ban on pumping cryptocurrencies for free, even though it could benefit those shilling the coin.
Dogecoin unaffected despite ban on Crypto promotion advertisement
With pumping crypto still enabled on the platform, Doge community has nothing to fear as TikTok has been used in the past to pump the coin to reach $1. Such campaigns can continue without a hitch.
Rival social media platform Instagram, owned by Facebook, continues to allow paid promotions of cryptocurrency. Last month, Kim Kardashian promoted an obscure token, EthereumMax, to her 228 million Instagram followers, with the hashtag #ad.
However, Google banned crypto advertisements in 2018, although it did remove part of that ban this year for some entities, pending certain requirements.
