- 68% of crypto advice on TikTok is misleading, often prioritizing influencers’ personal gain.
- 35% of misleading videos promise unrealistic returns, with 61% lacking proper risk disclosures.
With growing interest in cryptocurrencies, social media emerges as a crucial channel for experts to voice their opinions and perspectives.
Among different platforms, TikTok stands out as a significant arena for cryptocurrency guidance, attracting millions of daily viewers who consume content there.
A deeper inspection of crypto-related information on TikTok often uncovers the fact that a substantial chunk of it might not be as reliable as it appears to be for those interested in digital assets.
An examination of approximately 1,000 TikTok clips tagged with widely used cryptocurrency hashtags like #cryptok and #crypto reveals some troubling trends.
Shocking data from the crypto industry
It was discovered in this research that an alarmingly high 68% of crypto guidance provided on the platform may be misleading, potentially leading viewers into making unfavorable financial choices.
It’s not surprising that numerous influencers seem to put their own profits first, often pushing particular investments or overstating potential yields, all while neglecting to provide necessary cautions or disclosures.
Indeed, based on a study by Cryptoninjas and Storible, it was found that around two out of three misleading video presentations about cryptocurrency investments do not provide disclaimers, which would assist viewers in assessing the potential dangers involved.
Coins that have garnered influencer’s attention
Beyond this mistake, it’s not uncommon for influencers to endorse particular cryptocurrencies, which can create a bias in their content and potentially prioritize personal profit over neutral advice.
The study shows that Bitcoin (BTC) is mentioned in about 34% of video content, making it the asset most often discussed. Ripple (XRP) comes in second place, appearing in approximately 21% of videos.
As a crypto investor, I’ve noticed that Solana (SOL), Ethereum (ETH), and Dogecoin (DOGE) are frequently mentioned in videos, accounting for approximately 16%, 15%, and 14% of these discussions respectively. However, it’s important to note that these mentions often lack contextual information or risk disclosures, which can make it challenging to make informed investment decisions.
Commenting on the situation, the report added,
It’s troubling to note that certain cryptocurrencies are being aggressively endorsed more frequently. In fact, approximately 58% of deceptive TikTok videos focus on pushing a specific digital currency, often without giving enough information about the potential risks involved.
Unrealistic ROI promises
Experiencing firsthand, the deluge of misinformation on TikTok is truly mind-boggling. It’s alarming to see that nearly one third of these misleading videos tout implausibly high returns, frequently aiming at unsuspecting newcomers in the crypto world.
The videos do not adequately emphasize potential dangers and offer financial guidance that does not take into account each person’s risk threshold.
Or, more informally:
The videos don’t really bring up the downsides or give sound investment tips tailored to individual risk levels.
It’s noteworthy that these videos have a staggering impact, often garnering around 840,000 views and 24,000 likes per video. This widespread popularity could lead to significant financial implications.
Video content about meme coins is particularly concerning due to the high prevalence of misleading information (96%) and promotion of tokens that no longer exist (82%).
Moreover, about 70% of these influential figures are promoting their own paid services, whereas a mere 0.3% possess the necessary credentials. This situation increases the potential dangers for audiences, as they could be swayed by unqualified yet persuasive suggestions.
How to protect yourself from such scams?
Consequently, the report highlighted that as cryptocurrency becomes more widespread, it’s crucial for content creators to practice responsibility. It suggested that influencers should focus on providing transparent and ethical guidance.
OR
The report also underlined the importance of responsible content creation in crypto adoption, encouraging influencers to prioritize transparency and ethical advice.
Both suggestions maintain the original meaning while improving readability and naturalness.
2023 has seen an alarming rise in cryptocurrency-related fraud and scams, with a staggering 45% jump from the preceding year as indicated by a recent U.S. FBI report. This surge has resulted in a mind-boggling $5.6 billion in losses.
Therefore, it’s crucial for viewers to be vigilant when encountering crypto-related content. They should carefully evaluate the information provided and think thoroughly before taking any financial actions.
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2025-01-09 12:08