TikTok Crypto Influencers Mislead Viewers
Zach Anderson Apr 24, 2023 08:03
More than one-third of cryptocurrency influencers on TikTok have posted misleading videos about Bitcoin and other cryptocurrencies, according to a recent study. Many of these influencers fail to provide disclaimers warning users about the risks of investing in cryptocurrencies. Moreover, many are pushing services and investments for their own profit, without disclosing the payments they receive. The potential financial risks for unwary investors are high, with one in three misleading videos on TikTok mentioning Bitcoin. Viewers are advised to do their own research before making any investments.
TikTok, the popular social media platform, has become a go-to source of information for many young people today. However, a recent study conducted by daapGamble reveals that over one-third of cryptocurrency influencers on TikTok are sharing unvetted misinformation about Bitcoin and other cryptocurrency investments. Many of these influencers are promoting crypto investments without properly warning viewers about the risks, convincing unwary investors to put their hard-earned money into cryptocurrencies that are likely to lose value.
The study analyzed 1,161 crypto-related videos on TikTok, which used the hashtag “#cryptok.” More than one in three of these videos were found to be misleading, while just one in ten videos contained some form of disclaimer about the risks of investing. Additionally, 47% of the crypto influencers were found to be pushing services for their own profit.
The potential financial risk for unwary investors is high, with one in three misleading videos on TikTok mentioning Bitcoin. Furthermore, videos using popular crypto-related hashtags, such as #crypto, #cryptoadvice, and #cryptoinvesting, have cumulatively garnered over 6 billion views. However, viewers often overlook the ill intent of influencers and trust their content purely based on its high number of views or likes.
The study found that both new and seasoned investors should do extensive research on crypto projects before making any form of investment. While the reach of crypto influencers is smaller than that of mainstream celebrities, such as Kim Kardashian, Jake Paul, and Soulja Boy, the potential financial risks for unwary investors remains equally high.
In recent years, many mainstream influencers have been accused of promoting cryptocurrencies to their millions of fans without disclosing the payments they received. For instance, the United States Securities and Exchange Commission forced Kim Kardashian to pay $1.26 million in penalties for promoting EthereumMax (EMAX).
In April 2022, a $1 billion lawsuit was filed against crypto exchange Binance, CEO Changpeng Zhao, and three crypto influencers for allegedly promoting unregistered securities. The Moscowitz Law Firm and Boies Schiller Flexner, who filed the lawsuit, called this a classic example of a centralized exchange promoting the sale of an unregistered security.
In conclusion, while TikTok can be an excellent source of information, viewers are advised to exercise caution when it comes to crypto influencers and do their own research before making any investments.
Image source: Shutterstock