As social media continues to grow, TikTok has emerged as a leading platform for crypto advice. With an abundance of content and millions of viewers, it’s no surprise that the app hosts a vibrant community of crypto influencers. However, a deeper investigation shows that a large portion of the crypto advice on TikTok is misleading, posing serious risks for unsuspecting viewers. Through the analysis of over 1,000 crypto-related TikTok videos, CryptoNinjas, in partnership with Storible, has uncovered the unsettling reality of crypto advice and influencers on the platform.
Key Findings
- Nearly 70% of crypto advice on TikTok is misleading.
- 96% of TikTok videos promoting meme coins are misleading.
- 82% of the meme coins promoted on TikTok are now dead.
- Almost none of the crypto TikTok influencers hold relevant qualifications, while 70% are using the platform to promote their own paid services.
How Did We Do?
We analyzed 1,019 TikTok videos from well-known crypto-related hashtags like #cryptok and #crypto. Each video was evaluated based on four factors: the presence of disclaimers, promotion of specific crypto assets, claims of expected returns on investment, and advice to invest a certain amount of savings or income.
Additionally, we reviewed the profiles of 482 TikTok influencers to check for disclaimers, relevant qualifications, and self-promotion.
The Current State: A Warning for Crypto Investors
68% of crypto advice found on TikTok is misleading, with many influencers prioritizing their personal gain over the financial wellbeing of their audience. Among these misleading videos, several troubling patterns emerge.
Lack of Disclaimers: A Red Flag for Viewers
61% of these misleading videos fail to include any disclaimers, which are crucial for indicating that the advice may not be suitable for all audiences. Disclaimers help safeguard viewers by informing them that investment decisions should be made carefully and with full understanding of the risks involved.
Promoting Specific Cryptos: An Unethical Practice
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. Bitcoin (BTC) leads the pack, mentioned in 34% of these misleading videos, followed by XRP at 21%. Other tokens mentioned in misleading content include SOL (16%), ETH (15%), and DOGE (14%).
Unrealistic ROI Promises
Among these misleading videos, 35% promise unrealistic returns on investment (ROI). These claims often target novice investors, offering dreams of massive gains without acknowledging the inherent risks of the crypto market.
Promoting Specific Investment Amounts
In addition to pushing certain cryptocurrencies and ROIs, 50% of the misleading videos suggest specific amounts to invest in crypto. This kind of advice not only lacks sufficient context but also disregards the individual risk tolerance of the viewers.
The Impact of Misleading Crypto Content
On average, a misleading crypto video on TikTok garners 840K views and 24K likes. With such wide reach and engagement, it’s clear that the scale of misinformation can have far-reaching consequences. Viewers, particularly those new to crypto, may feel inclined to follow advice without fully understanding the risks, potentially leading to financial losses.
The Harsh Truth About TikTok Memecoin Promotions
TikTok is also rife with meme-based crypto promotions, many of which are misleading and potentially harmful. In fact, 96% of TikTok videos promoting meme coins fall into are misleading.
Even more concerning is that 82% of TikTok-promoted meme coins are now dead, further highlighting the danger of following trends without conducting due diligence.
Crypto TikTok Influencers: Who Are They?
The influencers behind these videos often lack the expertise required to give sound financial advice. A mere 0.3% of crypto TikTok influencers possess relevant qualifications, such as those in business, finance, or trading. Additionally, 90% of these influencers do not have disclaimers in their profiles, leaving their audience vulnerable to misguided advice.
Further compounding the issue is the fact that 70% of crypto TikTok influencers promote their own paid services, often blurring the lines between genuine advice and self-promotion. On average, these influencers have around 131K followers, meaning their reach can influence large numbers of people, making it all the more critical to be aware of their motives.
Conclusion: Buyer Beware
While TikTok can be a valuable platform for entertainment and learning, it’s crucial for crypto enthusiasts to approach content with caution. The fast-paced world of cryptocurrency trading requires a deep understanding of market dynamics that can’t be captured in short-form videos. Misleading advice, lack of qualifications, and unethical promotion of specific assets create an environment ripe for exploitation. As the crypto market continues to evolve, it is essential for both influencers and viewers to prioritize responsible content creation and consumption to safeguard against financial losses.
Methodology
We analyzed the transcripts of 1,019 TikTok videos from popular stock-related hashtags like #cryptok and #crypto. The transcripts were manually reviewed and rated based on how misleading each video was. A video was considered misleading if it met any of the following criteria:
- Lacked a disclaimer.
- Promoted a specific crypto token.
- Suggested a particular return on investment.
- Recommended a specific amount of savings or income to invest.
We also tallied the total views and likes of these misleading videos.
Additionally, we examined the profiles of 482 TikTok influencers to assess:
- Whether they included a disclaimer in their bio.
- Whether they held any relevant qualifications.
- Whether they promoted their own services.
