- 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.
As cryptocurrency continues to capture the public’s attention, social media has become a key platform for influencers to share their insights.
Among the various channels, TikTok has emerged as a prominent space for crypto advice, with millions of viewers consuming content daily.
While many users are eager to learn about digital assets, a closer look reveals that a significant portion of crypto-related content on TikTok may not be as trustworthy as it seems.
A recent analysis of over 1,000 TikTok videos using popular crypto hashtags such as #cryptok and #crypto paints a concerning picture.
Shocking data from the crypto industry
The study found that a staggering 68% of crypto advice on the platform is misleading, putting viewers at risk of making poor financial decisions.
As expected, many influencers appear to prioritize personal gain, promoting specific assets or promising exaggerated returns without offering proper disclaimers or warnings.
In fact, according to the report by Cryptoninjas and Storible, 61% of misleading videos fail to include disclaimers that could help viewers evaluate the risks associated with crypto investments.
Coins that have garnered influencer’s attention
In addition to this oversight, influencers are often seen promoting specific coins, further skewing the content towards personal gain.
The analysis reveals that Bitcoin [BTC] is the most frequently promoted asset, appearing in 34% of videos, followed by Ripple [XRP] with 21%.
Solana [SOL], Ethereum [ETH], and Dogecoin [DOGE] also make the list, with 16%, 15%, and 14% of videos respectively, all without proper contextual information or risk disclosures.
Commenting on the situation, the report added,
“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.”
Unrealistic ROI promises
As expected the scale of misinformation on TikTok is staggering as 35% of misleading videos promise unrealistic high ROI, often targeting novice crypto enthusiasts.
These videos fail to highlight the risks and provide investment advice without considering individual risk tolerance.
Interestingly, the reach of these videos is equally alarming, with an average of 840K views and 24K likes per video, amplifying the potential for financial consequences.
Videos promoting memecoins are particularly troubling, with 96% being misleading and 82% promoting dead tokens.
Additionally, 70% of influencers push their own paid services, while only 0.3% hold relevant qualifications. This further compounds the risks for viewers who may follow persuasive but unqualified advice.
How to protect yourself from such scams?
Thereby, seeing the dark side of crypto adoption, the report also emphasized the need for responsible content creation, urging influencers to prioritize transparency and ethical advice.
This is because recently a report from the U.S. FBI highlighted that cryptocurrency fraud and scams saw a dramatic 45% increase in 2023 compared to the previous year, leading to losses surpassing $5.6 billion.
Hence, to avoid falling prey, viewers must approach crypto content with caution, critically assessing the information before making any financial decisions.
