More than 30% of Crypto-Related TikTok Videos are Misleading
- TikTok viewers are often misled into believing in a project based on the number of likes and comments the clip generates.
A recent study has shown that more than one out of three TikTok influencers posted false videos on Bitcoin and cryptocurrency investments. This is of great concern because TikTok is the preferred social media platform for the younger generation.
TikTok has gained a lot of traction as a video-based substitute for Google searches. Some influencers have been seen to leverage the platform to spread unverified rumors regarding cryptocurrency investments, frequently attempting to persuade naive viewers to spend their money on misleading deals.
A recent study of over 1,161 crypto-related TikTok videos showed that one-third of such clips were misleading. The study also discovered that only one out of every ten cryptocurrency accounts or videos had a warning that informed consumers of the risk involved in making investments.
Of the group studied, 47% of creators were discovered attempting to sell services in order to profit. TikTok influencers have a smaller audience than their mainstream competitors. However, novice investors nonetheless run a high chance of losing money.
The study found that most of the misleading clips on TikTok referenced Bitcoin. Additionally, over 6 billion views have been generated by videos on TikTok with popular crypto-related hashtags, including crypto, cryptoadvice, cryptoinvesting,cryptotrading, and cryptocurrency. Viewers are often misled by the number of views and likes a clip has.
The culture of prioritizing profits is not exclusive to TikTok influencers. Reports claim that popular influencers, including Kim Kardashian, Jake Paul, and Soulja Boy, promoted cryptocurrency projects to their fans without stating that they received payments. Kim Kardashian was fined $1.26 million by the US Securities and Exchange Commission for her role in promoting EthereumMax (EMAX).