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More than a third of crypto influencers on TikTok, the go-to social media platform for the younger generation, have posted misleading videos about Bitcoin (BTC) and other cryptocurrency investments, according to a recent study.
Many people now rely on TikTok as their primary source of information rather than going to Google for answers, but daapGamble’s recent study alleges that many influencers are sharing unverified misinformation about crypto investments, often trying to convince unwary viewers to put their or their parents hard-earned money into cryptocurrencies that will cause them to lose money.
Many TikTok influencers use the #cryptok hashtag when posting crypto-related content. DaapGambl analyzed 1,161 such TikTok videos and found that more than one in three were misleading. The research also found that only one in 10 cryptok accounts or videos contained some form of disclaimer warning users of the risks of investing.
It has been found that 47% of TikTok crypto creators try to make money by pushing the 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 fans without disclosing the payments they received.
The United States Securities and Exchange Commission forced Kim Kardashian to pay $1.26 million in penalties for promoting EthereumMax (EMAX). While crypto influencers have a smaller reach than their traditional counterparts, the potential financial risk for unwary investors remains just as high.
The research also found that one in three misleading videos on TikTok mention Bitcoin. Additionally, videos on TikTok sporting popular crypto-related hashtags such as #crypto, #cryptok, #cryptoadvice, #cryptocurrency, #cryptotrading, and #cryptoinvesting have amassed over 6 billion views.
Viewers often overlook bad intentions of influencers and trust their content solely based on its high number of views or likes. Both new and seasoned investors are advised to thoroughly research crypto projects before making any form of investment.
Follow the Cointelegraphs TikTok account for the latest crypto industry news.
Related: How a TikTok Ban in the US Could Affect the Crypto Industry
On April 2, a billion-dollar lawsuit was filed against crypto exchange Binance, CEO Changpeng Zhao, and three crypto influencers for allegedly promoting unregistered securities.
It’s a classic example of a centralized exchange, which promotes the sale of an unregistered security, said the lawsuit, filed by law firm Moscowitz and Boies Schiller Flexner.
As Cointelegraph reported, the lawsuit alleges that millions of people could be eligible for damages.
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