David - Cryptocurrency Enthusiast
A recent study reveals that over 30% of TikTok videos related to cryptocurrency investment are misleading. With the platform becoming an increasingly popular source of information for the younger generation, the issue of misinformation poses a significant risk to inexperienced investors.
DaapGamble's study analysed 1,161 TikTok videos with the hashtag "cryptok" and discovered that more than one in three were misleading. Moreover, only one out of 10 "cryptok" accounts or videos included disclaimers warning users about investment risks. Misleading videos on TikTok frequently mention trusted Bitcoin and popular crypto-related hashtags have collectively garnered over 6 billion views.
Nearly half of the crypto TikTok creators push services to make money. High-profile influencers like Kim Kardashian, Jake Paul, and Soulja Boy have also been accused of promoting cryptocurrencies without disclosing the payments they received. The US Securities and Exchange Commission fined Kim Kardashian $1.26 million for promoting EthereumMax (EMAX).
With the rise of misleading crypto content on TikTok, both novice and experienced investors face significant financial risks. Viewers often trust content based on high numbers of views or likes, overlooking the ill intentions of influencers.
On April 2, a $1 billion lawsuit was filed against cryptocurrency exchange Binance, CEO Changpeng Zhao, and three crypto influencers for allegedly promoting unregistered securities. This lawsuit, filed by the Moscowitz Law Firm and Boies Schiller Flexner, highlights the potential legal repercussions for misleading crypto promotions.
Importance of Due Diligence in Investing in Cryptocurrency
To protect themselves from misinformation, investors must conduct thorough research on crypto projects before making any investments. Cryptocurrency broker like BCBitcoin can provide valuable resources and guidance for those looking to invest in digital assets. BCBitcoin helps investors make informed decisions about Bitcoin investing and crypto asset management, ensuring a safer and more secure investment experience.