TikTok bans influencers from promoting crypto

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Day traders, your TikTok glory days are over. The video app banned influencers from promoting the cryptocurrency on the platform on July 21, citing more and more cases of fraud and scams among its users. The ban extends to the promotion of loans, credit cards, currency, buy-it-now and pay-back programs and trading platforms. Financial services companies will still be allowed to advertise to people over the age of 18, although TikTok is already banning cryptocurrency-related ads.

Since the Bitcoin craze reached new heights this year, crypto trading companies have paid celebrities to advertise the cryptocurrency. Considering the risky nature of crypto investments, this can motivate naive young investors to take huge financial risks in order to make their money grow quickly, which can also lead to big losses.

Last month, Kim Kardashian West posted an ad in her Instagram Story for EthereumMax, writing: Are you guys in crypto ???? This is not about financial advice but about sharing what my friends told me about the EthereumMax token! And TikTok influencers like Charlie DAmelio, Jake Paul, and MrBeast have also posted paid ads for the cryptocurrency.

More and more influencers have been promoting altcoins, which are new cryptocurrencies that are even more volatile than Bitcoin and established cryptocurrencies. YouTube influencers the Nelk Boys recently posted on Twitter why people should get tired of influencers promoting cryptocurrency, especially crypto which is not well established.

Despite the ban on promoting crypto, unregulated financial advice, both legitimate and otherwise, will still find a place on TikTok, with hashtags like #fintok at 428 million views and #stocktok at 1.4 billion. of views.

Cryptocurrency joins the list of things TikTok influencers are already not allowed to advertise, including alcohol, tobacco products, contraceptives, pharmaceuticals, and political content. In the United States, influencers also cannot advertise energy drinks or weight loss services.

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