Over a Third of Crypto Influencers Post Misleading Videos About Bitcoin on TikTok, the Younger Generation's Preferred Social Media Platform. According to a recent study, along with other cryptocurrency investments.
Many people now rely on TikTok as their first source of information rather than going to Google for answers, but recent research by daapGambl claims that many influencers are sharing unvetted misinformation about crypto investing, often trying to convince the unwary of viewers put their or their parents ' hard-earned money into crypto, and it will cost them money.
Many TikTok influencers use the hashtag "#cryptok" when posting crypto-related content. dappGambl analyzed 1,161 of these TikTok videos and found that more than a third were misleading. The study also found that only one in 10 "cryptok" accounts or videos included some form of disclaimer warning users about the risks of investing. 47% of crypto TikTok creators were found to be trying to make money from push services. Meanwhile, mainstream influencers such as Kim Kardashian, Jake Paul and Soulja Boy have also previously been accused of promoting cryptocurrencies to their millions of followers without disclosing the payments they received.
The SEC forced Kim Kardashian to pay a $1.26 million fine for promoting EthereumMax (EMAX). Although cryptocurrency influencers have less reach than their mainstream counterparts, the potential financial risk for unwary investors is still just as high. The study also found that a third of misleading videos on TikTok mentioned Bitcoin. Additionally, videos on TikTok with popular crypto-related hashtags such as #crypto, #cryptok, #cryptoadvice, #cryptocurrency, #cryptotrading, and #cryptoinvesting have amassed over 6 billion views s.
Viewers often ignore the malice of influencers and trust their content purely based on their sheer number of views or likes. Investors new and old are advised to conduct extensive research on crypto projects before making any kind of investment. On April 2, a $1 billion law suit was filed against cryptocurrency exchange Binance, CEO Changpeng Zhao and three cryptocurrency influencers for allegedly promoting unregistered securities.
"This is a classic example of a centralized exchange that is facilitating the sale of unregistered securities," said the lawsuit, filed by law firm Moskowitz and Boies Schiller Flexner.
