A recent study conducted by dappGambl has found that over 30% of TikTok videos on Bitcoin and cryptocurrency investments are misleading.
The study analyzed over 1,161 TikTok videos that used the hashtag ‘#cryptok’ to post crypto-related content. The research found that 1 in every 3 videos on crypto TikToks was misleading, with just 1 in 10 videos containing any form of disclaimer to warn users about the risks of investments.
Moreover, 47% of TikTok creators were found to be pushing services to make money. Even mainstream influencers, such as Kim Kardashian, Jake Paul, and Soulja Boy, were accused of promoting cryptocurrencies to their millions of fans without disclosing payments received.
The potential financial risk for unwary investors remains high, despite TikTok influencers having a smaller reach than their mainstream counterparts.
The research also found that Bitcoin was mentioned in 1 in 3 misleading videos on TikTok. Videos on TikTok sporting popular crypto-related hashtags have cumulatively churned over 6 billion views.
Investors are advised to do extensive research on crypto projects prior to making any investment, as overlooking the ill-intent of influencers could result in potential financial losses.
Recently, a $1 billion lawsuit was filed against crypto exchange Binance, its CEO Changpeng “CZ” Zhao, and three crypto influencers for promoting unregistered securities.