A recent study has found that over 30% of TikTok videos relating to cryptocurrency investments are misleading. The study, conducted by daapGamble, analyzed 1,161 videos tagged with popular crypto-related hashtags such as “crypto,” “cryptok,” and “cryptoadvice,” and found that more than one-third of the crypto influencers on TikTok had posted misleading content about Bitcoin and other cryptocurrencies.
The use of social media platforms, such as TikTok, as a primary source of information has become increasingly common among the younger generation. However, the study reveals that many influencers on the platform are sharing unverified information about crypto investments, often attempting to persuade naive viewers to invest their savings or their parents’ money in cryptocurrencies that could result in significant financial losses.
The study also found that 47% of the crypto TikTok creators analyzed were pushing services to make money. The analysis revealed that only one out of ten “cryptok” accounts or videos contained any form of disclaimer warning viewers about the risks associated with investing in cryptocurrencies.
Furthermore, mainstream influencers such as Kim Kardashian, Jake Paul, and Soulja Boy have also faced accusations of promoting cryptocurrencies to their millions of followers without disclosing the payments they received. For instance, the United States Securities and Exchange Commission imposed a $1.26 million penalty on Kim Kardashian for promoting EthereumMax (EMAX).
The research highlights that one in three misleading videos on TikTok mentions Bitcoin. Additionally, videos with popular crypto-related hashtags, including “crypto,” “cryptok,” “cryptoadvice,” “cryptocurrency,” “cryptotrading,” and “cryptoinvesting,” have collectively amassed over 6 billion views.
The potential financial risks for unwary investors remain high, and it is crucial to exercise caution when it comes to investing in cryptocurrencies. It is vital to obtain accurate and verified information from trustworthy sources before making any investment decisions.