A recent study found that more than one in three influencers on TikTok, the social media platform of choice for young people, post misleading videos about Bitcoin (BTC) and cryptocurrency investments.
TikTok has been widely adopted as a video-based alternative to Google search. However, some influencers have been found to share unverified misinformation on the social media platform about cryptocurrency, often trying to convince unsuspecting viewers to invest their (or their parents’) hard-earned money in cryptocurrency. that generate losses.
TikTok influencers use the hashtag “#cryptok” when posting cryptocurrency-related content. An analysis of more than 1,161 of these TikTok videos – conducted by dappGambl – revealed that more than one in three cryptocurrency TikTok videos were misleading. The research also found that only 1 in 10 cryptocurrency accounts or videos contained any kind of disclaimer warning users about the risk of investing.
47% of TikTok creators were trying to promote services to earn money. Other influencers, including Kim Kardashian, Jake Paul, and Soulja Boy, have also been previously accused of promoting cryptocurrency to their millions of followers without disclosing the payments received.
The United States Securities and Exchange Commission forced Kim Kardashian to pay $1.26 million in penalties for promoting EthereumMax (EMAX). Although TikTok influencers have a smaller reach than their mainstream counterparts, the potential financial risk for unsuspecting investors remains just as high.
The research also found that 1 in 3 misleading videos on TikTok mention Bitcoin. Additionally, TikTok videos with popular cryptocurrency-related hashtags -such as crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading and cryptoinvesting– have amassed over 6 billion views.
Viewers often overlook the malicious intent of their favorite influencers and end up trusting their content based solely on the high number of views or likes. New and experienced investors alike are advised to thoroughly research cryptocurrency projects before making any type of investment.
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On April 2, a $1 billion lawsuit was filed against cryptocurrency Binance, its CEO Changpeng “CZ” Zhao, and three crypto influencers for promoting unregistered securities.
“This is a classic example of a centralized exchange, which is promoting the sale of an unregistered security,” the lawsuit filed by the Moscowitz and Boies Schiller Flexner law firm said.
As Cointelegraph reported, the lawsuit alleges that “millions” of people could be entitled to compensation for damages.
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