TikTok Crypto Investment Videos Are Highly Misleading, Study Finds

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Research has found that 30% of TikTok videos about crypto investments share bad messages. The videos sport crypto-related hashtags such as investing, trading, and advice.

Additionally, researchers found that TikTok influencers promoting investments in Bitcoin and digital assets had garnered billions of views on their videos cumulatively.

Crypto Influencers on TikTok Are Posting Misleading Information

TikTok is a popular video platform where many people search for information besides Google. But dappGambl researchers found that many digital influencers post misleading information about digital investments on TikTok.

dappGambl analyzed over 1,161 TikTok videos and found that one in 10 people warn viewers about the risks of investing in crypto. The others did not add risk disclaimers. Additionally, researchers found that 47% of content creators are solely focused on making money from the services they provide to their viewers.

Additionally, dappGambl researchers also found that one in three misleading TikTok videos focused on Bitcoin. All videos with crypto-related hashtags have garnered over 6 billion views on the platform.

These influencers aim to convince uninformed and unsuspecting viewers to spend money on crypto assets even though they will lose their funds.

Notably, most viewers of Tiktok videos belong to the younger generation, not well equipped to decipher malicious intent. As such, these influencers easily trick them and sometimes their parents with questionable crypto investment returns.

Crypto influencers pose financial risks to investors

One of the dangers of sharing unverified or misleading information with billions of viewers is that they will believe what influencers are saying, given how trusted they are. It’s one of the reasons regulators have asked influencers to disclose the payments they receive for promoting products or services.

However, some mainstream influencers haven’t bought into it, pushing unsuspecting investors to massive losses. For example, influencers such as Soulja Boy, Kim Kardashian, and Jake Paul have faced the United States Securities and Exchange Commission for promoting crypto projects.

Kim Kardashian was sued for promoting EthereumMax (EMAX) and paid $1.26 million in penalties. Soulja Boy and others have been sued for promoting SafeMoon, a native BNB chain token that became a Ponzi scheme.

Another recent case was a billion dollar lawsuit against Binance, its CEO Changpeng Zhao and three cryptocurrency influencers for allegedly promoting unregistered securities. The filing revealed that millions of investors could be eligible for damages for their actions.

The crypto market is in reversal mode l Source: Tradingview.com

While TikTok influencers may not have a wider reach with their content, they still pose financial risks for investors on the platform.

Unfortunately, most users of TikTok and other video sharing platforms usually rely on the number of views and likes on a video to qualify it as authentic. Thus, the best influencers easily convince them to invest in any product.

But given their findings, the researchers now advise new and experienced investors to carefully consider each investment opportunity before committing funds.

Featured image from Pixabay and graphic from Tradingview

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