Many influencers have taken to TikTok, the latest go-to social media platform for youngsters to disseminate misleading information about cryptocurrencies including Bitcoin (BTC).
Some of these influencers have engaged digital assets-related hashtags like crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading and crypto investing in the videos and other posts while talking about crypto investments.
A significant percentage of influencers on TikTok are now convincing the gullible young generation to invest their funds or that of their parents into speculative crypto assets without revealing the risks attached to such investments. Unfortunately, this trend has gained traction with over 6 billion views so far.
TikTok Crypto Influencers Push for Profit
Based on an analysis conducted by dappGambi with about 1161 videos on TikTok, it was discovered that one out of every three videos contains misleading content on crypto.
Also, only one out of ten videos or crypto TikTok accounts contain a disclaimer stating the risks involved in certain crypto investments. Almost half of the crypto TikTok accounts were observed to be pushing to make their profit by promoting these unverified and false crypto investments. Markedly, a majority of these misleading videos mentioned the leading digital asset BTC.
Celebrities Charged For Promoting Crypto Assets
Certain celebrities have been indicted for participating in such deceitful schemes and most of them had to pay a heavy fine. TV reality star Kim Kardashian was levied a fine of $1.26 million in disgorgement, prejudgment interest, and penalty for promoting a crypto token offered by EthereumMax (EMAX). She was also banned from promoting any crypto project for the next three years whether verified or not.
NFL quarterback Tom Brady and NBA point guard Stephen Curry were also kept under investigation by the Texas State Securities Board for promoting the FTX exchange which included last year.
UK Authorities Warns Crypto Influencers
Earlier in April, authorities in the United Kingdom formed a partnership to roll out an initiative to stop financial influencers from promoting illegal investment schemes including crypto. The Financial Conduct Authority (FCA) and the Advertising Standards Authority (ASA) in collaboration with Love Island Star- Sharon Gaffka came up with the initiative to help influencers better understand assets that they could promote.
Meanwhile, some crypto-related companies in the UK had previously received guidelines from ASA for their advertisement.
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