Misleading Crypto Videos on TikTok Lack Disclaimers, Analysis Finds

More than two-thirds (68%) of crypto advice on the social media platform TikTok is misleading, so crypto enthusiasts should approach such content with caution.

Recent Analysis Shows 68% of Crypto Advice on TikTok Is Misleading

A recent analysis of over 1,000 TikTok videos on cryptocurrency has revealed that a staggering 68% of the crypto advice provided on the platform is deemed misleading. This analysis, conducted by Cryptoninjas and Storible, highlights a pressing issue within the realm of social media finance.

Crypto enthusiasts are urged to approach such content with a discerning eye, as many influencers prioritize their personal gain over the financial well-being of their audience. This concerning trend could lead to novice investors making ill-informed decisions based on incomplete or biased information.

The analysis, which scanned TikTok for videos containing cryptocurrency advice, identified 482 influencers and analyzed their content. Among the key findings:

– 61% of the misleading videos lack any disclaimers to help users assess the risks involved.

– Influencers perpetuate the unethical practice of promoting specific coins, with Bitcoin (BTC) being rooted for in 34% of the videos, followed by XRP at 21%.

– Videos promoting solana (SOL), ethereum (ETH), and dogecoin (DOGE) complete the top five with 16%, 15%, and 14%, respectively.

Another disturbing trend is the promotion of particular cryptocurrencies. 58% of misleading TikTok videos promote a specific crypto asset, often without providing sufficient context about the risks associated with these assets.

According to the report, another concerning aspect is the promotion of specific cryptocurrencies by influencers. The analysis found that 58% of the misleading TikTok videos promote a specific crypto asset, often without providing sufficient context about the risks associated with these assets.

Data shows that in 34% of the videos, influencers are seen rooting for Bitcoin (BTC), followed by XRP at 21%. Videos promoting solana (SOL), ethereum (ETH), and dogecoin (DOGE) complete the top five with 16%, 15%, and 14%, respectively.

Commenting on this practice, the report said:

“Another disturbing trend is the promotion of particular cryptocurrencies. 58% of misleading TikTok videos promote a specific crypto asset, often without providing sufficient context about the risks associated with these assets.”

Crucially, the analysis also found that half of the analyzed videos “suggest specific amounts to invest in crypto, which could lead viewers to making impulsive decisions.” Such advice ignores the individual risk tolerance of viewers and may not be suitable for everyone.

To demonstrate just how effective the misleading videos are, the Cryptoninjas and Storible’s analysis found that each of the videos gets an average of 840,000 views and 24,000 likes. This highlights the vast reach of these influencers and the potential impact of their content on viewers.

Turning to videos featuring memecoins, the analysis found 96% of these to be misleading, while 82% of the videos promoted dead memecoins. About 70% of crypto TikTok influencers promote their own paid services.

In concluding the report, Cryptoninjas and Storible said that as the crypto market continues to evolve, both influencers and viewers must strive for responsible content creation and consumption to safeguard against financial losses.

The report also analyzed videos featuring memecoins and found that 96% of these were deemed misleading, with 82% promoting dead memecoins. Additionally, about 70% of crypto TikTok influencers were found to promote their own paid services, and only 0.3% of TikTok influencers had relevant qualifications.

In conclusion, the report highlights the prevalence of misleading crypto advice on TikTok and the need for both influencers and viewers to prioritize responsible content creation and consumption to safeguard against potential financial losses in the rapidly evolving crypto market.