The rise of cryptocurrency has been one of the most talked-about topics among investors in recent years. Many investors claim that these new and innovative digital currencies have made it easier than ever to become an investor in this space.
TikTok Influencers Deceive Viewers with False Crypto Investment Advice
However, a new study has found that over 30% of TikTok videos on cryptocurrency investments are deceptive. According to the research, TikTok videos featuring popular crypto hashtags have accumulated nearly 6.1 billion views.
Meanwhile, the study also found that many of these videos are deceitful, particularly those that promise quick and easy profits.
A recent study has revealed that TikTok has become a popular alternative to Google searches, particularly for the younger generation. However, a concerning trend has emerged where some influencers on this micro-vlogging site share unproven information about crypto investments.
These influencers often attempt to persuade unsuspecting viewers, or even their parents, to invest in cryptocurrencies, but all usually lead to losses. Shockingly, the study found that over one-third of TikTok, influencers have posted deceptive videos about Bitcoin and other cryptocurrency investments.
Most TikTok influencers who post content related to cryptocurrencies use the hashtag “#cryptok.” Accordingly, a recent analysis by dappGambl of more than 1,161 such TikTok videos shows that the information about 34% of these videos is incorrect.
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Notably, only 10% of the cryptok-related accounts and videos had some disclaimer warning users about cryptocurrency investment risks. The research also revealed that 48% of the creators on this platform were promoting these crypto-related investment products and services to make money.
Even famous influencers, such as Jake Paul, Soulja Boy, and Kim Kardashian, were previously accused by financial watchdogs of promoting cryptocurrencies to their millions of followers without disclosing any payments received.
For instance, Kim Kardashian was compelled by the US SEC to pay $1.27 million in fines because she promoted EMAX tokens without disclosing to her followers that she received financial compensation for the promotion. According to the study, approximately one-third of deceptive TikTok videos mention Bitcoin.
Additionally, videos associated with well-known crypto-related hashtags like #cryptok, #crypto, $cryptocurrency, #cryptoadvice, #cryptoinvesting, and #cryptotrading cumulatively have over 6 billion views at the time of writing.
Unfortunately, many viewers overlook the malicious intentions of their favored influencers and rely solely on their content because of the high number of views or likes on their posts. Hence, the study pointed out that investors need to know the potential risks associated with cryptocurrency investing and seek advice from trustworthy sources.
Novice and experienced investors must thoroughly research crypto projects before committing to any investment. The research highlights the need for outstanding education and awareness of cryptocurrency risks and rewards.
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