Watch out for crypto videos

As one of the biggest social media platforms, TikTok has influence around the world.

As one of the biggest social media platforms, TikTok has influence around the world. A study now shows how many misleading videos are posted about cryptocurrencies.

Fear, Uncertainty, and Doubt (FUD) is spreading like wildfire across social media. There’s another new rumor circulating, and the world is already doubting what’s true. TikTok is part of the mix. Every third video about cryptocurrencies is misleading, according to a study from dappGambl.

Users are watching educational content, including financial tips, under the hashtag "LearnOnTikTok". In this category, videos have racked up a combined 492 billion views. One slice of that: CrypTok. "It’s a growing niche with influencers claiming to be experts. Because the platform rewards popularity over reliability and regulated content, TikTok is full of scammers and misinformation," the authors say.

Disclaimer "No investment advice" missing

Only ten percent of all profiles studied say the videos are not investment advice. Of the 594 accounts, only 62 have a so-called disclaimer. The authors urge: "The disclaimer should make it clear to viewers that the content presented is only the creator’s opinion. A disclaimer should also encourage people to do their own research."

35 percent of the misleading videos used Bitcoin to spread false information. Following that are Ripple, Ethereum in third place, and Dogecoin and Shiba Inu also in the top ten. In total, 53 different cryptocurrencies were mentioned across all tagged videos. Of the 434 videos with more than 189 million views, 37 percent were misleading, the study found.

Methodology

As part of the study, the research team reviewed 1,161 videos. Videos were classified as "misleading" if they lacked a disclaimer. Posts with promises of investments or returns were also labeled misleading by the authors.

Read also: Authority blocks 12,000 crypto accounts on social media