Misleading Crypto Videos on TikTok Lack Disclaimers and Promote Unrealistic Expectations
A recent analysis has revealed that over 68% of cryptocurrency-related advice on TikTok is misleading, raising concerns about the platform's influence on crypto enthusiasts. According to a joint report by Cryptoninjas and Storible published on January 6, many of these videos prioritize personal profit over the financial well-being of their audience.
The study analyzed over 1,000 TikTok videos on cryptocurrency, uncovering a troubling trend where 61% of misleading videos lacked proper disclaimers to help users assess associated risks. Additionally, 58% promoted specific crypto assets without providing sufficient context on their risks, further exacerbating the problem.
Promotion of Specific Coins and Unrealistic Promises
Among the misleading content, Bitcoin (BTC) was the most frequently promoted cryptocurrency, featured in 34% of videos, followed by XRP (21%), Solana (SOL, 16%), Ethereum (ETH, 15%), and Dogecoin (DOGE, 14%). The report criticized the trend of endorsing specific cryptocurrencies, often without adequate explanation of potential risks.
A particularly concerning finding was that 35% of these videos promised unrealistic investment returns, targeting beginner or inexperienced users to avoid scrutiny. Furthermore, 50% of videos suggested specific amounts for investment, disregarding the audience's individual risk tolerance.
High Engagement Despite Misleading Content
Misleading crypto videos on TikTok have proven highly effective in reaching audiences. On average, each video garnered 840,000 views and 24,000 likes, underscoring their wide reach. Content promoting memecoins was especially problematic, with 96% of such videos deemed misleading, and 82% promoting “dead” coins with no real value.
Adding to the concern, 70% of crypto TikTok influencers offered paid services, yet only 0.3% of them were found to possess relevant qualifications to provide financial advice.
Calls for Responsible Content Creation and Consumption
Cryptoninjas and Storible concluded their report by emphasizing the need for greater accountability from both influencers and viewers. As the crypto market continues to evolve, fostering responsible content creation and consumption is essential to minimize financial losses and protect new investors from falling victim to misinformation.
Conclusion
The findings reveal a pressing issue in the crypto community: the prevalence of misleading information on platforms like TikTok. With a significant portion of users relying on such content for guidance, it is crucial for both creators and viewers to adopt more responsible practices to ensure informed decision-making in the volatile cryptocurrency market.
