TikTok Videos Featuring Crypto-Related Hashtags Garner 6 Billion Views
TikTok has become a popular video-based alternative to Google searches, and videos sporting popular crypto-related hashtags have cumulatively churned over 6 billion views. Hashtags such as crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading, and cryptoinvesting are being used in TikTok videos to share crypto-related content. However, a recent analysis of over 1,161 such TikTok videos conducted by dappGambl revealed that over one in three videos on crypto TikToks were misleading. Many influencers have been sharing unvetted misinformation on the platform about crypto investments, attempting to convince unwary viewers to invest their hard-earned money into loss-making cryptocurrencies.
High Percentage of Misleading Content and Lack of Disclaimers
The research found that out of the 1,161 TikTok videos analyzed, only 1 in every 10 cryptok accounts or videos contained some form of disclaimer warning users about the risks of investments. Additionally, 47% of TikTok creators were found trying to push services to make money. Mainstream influencers, including Kim Kardashian, Jake Paul, and Soulja Boy were also previously accused of promoting cryptocurrencies to their millions of fans without disclosing payments received.
The United States Securities and Exchange Commission forced Kim Kardashian to pay $1.26 million in penalties for the promotion of EthereumMax (EMAX). While TikTok influencers have a smaller reach than their mainstream counterparts, the potential financial risk for unwary investors remains equally high. It’s important to note that viewers often oversee the ill-intent of their favorite influencers and end up trusting their content purely based on the high number of views or likes.
Risks of Investing in Misleading Crypto Content
The research also found that 1 in 3 misleading videos on TikTok mention Bitcoin. Both new and seasoned investors are advised to do extensive research on crypto projects prior to making any form of investment. It’s essential to be aware of the risks associated with investing in misleading crypto content.
Billion-Dollar Lawsuit Filed Against Binance and Crypto Influencers
On April 2, a $1 billion lawsuit was filed against crypto exchange Binance, its CEO Changpeng “CZ” Zhao, and three crypto influencers for promoting unregistered securities. The lawsuit was filed by the Moscowitz Law Firm and Boies Schiller Flexner, alleging that “millions” of people could be eligible for damages. The lawsuit accuses Binance of promoting the sale of an unregistered security and highlights the need for investors to be vigilant when investing in crypto projects.
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Conclusion
TikTok videos featuring popular crypto-related hashtags have garnered over 6 billion views. However, a high percentage of these videos contain misleading information, and many influencers are attempting to push services to make money. Investors are advised to do their research prior to investing in any crypto project and to be aware of the risks associated with investing in misleading content. The billion-dollar lawsuit filed against Binance and crypto influencers highlights the importance of being vigilant when investing in the crypto industry.
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