Over 1 in 3 TikTok Influencers Post Misleading Crypto Content, Study Finds
Introduction
Findings of the Study
Lack of Accountability and Transparency
Risks for Unwary Investors
Regulatory Measures and Accountability
Takeaways
Conclusion
TikTok influencers are posting misleading videos about cryptocurrency investments, as revealed in a study by dappGambl. Over one in three videos were found to be deceptive, with some influencers sharing unvetted misinformation on crypto investments, putting the hard-earned money of their viewers into loss-making cryptocurrencies.
Findings of the Study:
The analysis of over 1,161 TikTok videos with the hashtag “#cryptok” revealed that only 1 in every 10 cryptok accounts or videos contained a disclaimer warning users about the risk of investments. Additionally, out of the lot, 47% of TikTok creators were found trying to push services to make money. Popular crypto-related hashtags such as crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading, and cryptoinvesting have cumulatively churned over 6 billion views on TikTok, making the platform a breeding ground for unverified information on crypto investments.
Lack of Accountability and Transparency:
This lack of accountability and transparency highlights the need for better regulation in the social media industry. Many individuals, particularly younger generations, use TikTok as an alternative to Google searches. However, the potential financial risk for unwary investors remains high, despite TikTok influencers having a smaller reach than their mainstream counterparts.
Risks for Unwary Investors:
Individuals investing their hard-earned money into cryptocurrencies without proper research can result in significant financial losses. The consequences of this trend are severe. The study by dappGambl shows that there is a need for stricter regulations and accountability measures for social media platforms.
Regulatory Measures and Accountability:
The United States Securities and Exchange Commission (SEC) has cracked down on the promotion of cryptocurrencies by influencers. The SEC forced Kim Kardashian to pay $1.26 million in penalties for the promotion of EthereumMax (EMAX). Other mainstream influencers such as Jake Paul and Soulja Boy have also been accused of promoting cryptocurrencies to their millions of fans without disclosing payments received. 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.
Takeaways:
Investors, both new and seasoned, are advised to do extensive research on crypto projects before making any form of investment. Social media platforms such as TikTok need to take responsibility for the content shared by their influencers and ensure that users are properly warned about the risks of investing in cryptocurrencies.
Conclusion:
The study by dappGambl highlights the urgent need for stricter regulations and accountability measures for social media platforms. The potential financial risk for unwary investors remains high, making it crucial for investors to do their due diligence before investing in cryptocurrencies. It is time for social media platforms such as TikTok to take responsibility and ensure that users are properly warned about the risks of investing in cryptocurrencies.
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