According to a recent study, more than one-third of crypto influencers on TikTok, the social media platform popular among younger audiences, have shared misleading videos regarding Bitcoin (BTC) and other cryptocurrency investments. The study by daapGamble revealed that many influencers on TikTok are sharing unverified information about crypto investments and persuading viewers to invest their or their parents’ savings in cryptocurrencies that are likely to yield losses. Among the 1,161 videos analyzed by daapGambl using the hashtag “#cryptok,” over 33% were considered misleading, and only one in ten accounts or videos provided some form of disclaimer outlining the risks of investing in cryptocurrencies. About 47% of crypto TikTok creators were also found to offer money-making services. While popular influencers such as Kim Kardashian, Jake Paul, and Soulja Boy have previously been accused of promoting cryptocurrencies without disclosing payments received from their sponsors, crypto influencers pose a significant risk to unsuspecting investors. Viewers should exercise caution, conduct extensive research on crypto projects, and use reliable sources before investing in cryptocurrencies.
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In another development, on April 2, a $1 billion lawsuit was filed against crypto exchange Binance, its CEO Changpeng Zhao, and three crypto influencers for endorsing unregistered securities. The suit, filed by the Moscowitz Law Firm and Boies Schiller Flexner, alleges that these influencers and Binance, a centralized exchange, promoted the sale of unregistered security, potentially putting millions of people at risk of financial damage.
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