A recent analysis of over 1,000 Tiktok videos on cryptocurrency found that 68% of crypto advice on the platform is misleading.
Misleading Crypto Videos Lack Disclaimers
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. An analysis of over 1,000 Tiktok videos on cryptocurrency found that many of the 482 influencers featured in the videos appear to prioritize their personal gain over the financial well-being of their audience.
According to a Jan. 6 report by Cryptoninjas and Storible, 61% of the misleading videos do not include any disclaimers to help users assess the risks involved. The analysis also determined that the influencers perpetuate the unethical practice of promoting specific coins. 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.
Besides shilling specific coins, just over a third (35%) of these misleading videos promise unrealistic returns on investment. However, to ensure their videos are not scrutinized, the influencers usually target novices or inexperienced users.
To drive the uptake of certain cryptocurrencies, half of the analyzed videos “suggest specific amounts to invest in crypto.” Such advice, according to the report, ignores the individual risk tolerance of viewers. 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.
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. Meanwhile, the analysis found that only 0.3% of Tiktok influencers have relevant qualifications.
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.
