Cryptocurrency advice on TikTok has become a hot topic, but is it all sound advice?
A recent analysis by CryptoNinjas reveals alarming statistics about the trustworthiness of crypto-related content on the platform.
With millions of users scrolling through crypto tips, the findings suggest that much of the information being shared could put viewers at significant financial risk.
A thorough review of over 1,000 TikTok videos has shown that a staggering 68% of crypto advice is misleading.
The analysis, which assessed videos from influencers using popular hashtags such as #cryptok and #crypto, highlights a concerning trend of influencers prioritising their personal gain over the well-being of their audiences.
In 61% of the misleading videos, no disclaimers were provided, leaving viewers unaware of the risks involved.
The promotion of specific cryptocurrencies is a frequent occurrence in misleading TikTok videos.
Almost 60% of such videos were found to endorse particular crypto assets without sufficient risk warnings.
Bitcoin (BTC) is the most promoted coin, appearing in 34% of videos, followed by XRP at 21%, and other popular assets like Solana (SOL), Ethereum (ETH), and Dogecoin (DOGE) also make regular appearances.
A worrying trend is the promotion of assets that have since lost their value.
In many cases, these videos promote coins without mentioning their volatility or past market struggles, misleading viewers into thinking they are safe investments.
As if the promotion of specific assets wasn’t risky enough, 35% of the videos in the analysis also claimed unrealistic returns on investment.
These exaggerated promises paint a picture of massive gains that are unattainable for most investors.
“Invest in crypto, and you could be rich overnight,” one influencer suggests, targeting novice investors who may not fully understand the volatile nature of the market.
This type of advice is especially concerning because it often appeals to people with limited experience, enticing them with dreams of quick returns without the necessary context about the market’s risks.
Another disturbing factor in these videos is the advice given regarding specific investment amounts.
Nearly half of the misleading videos (50%) recommend viewers invest a particular sum, without taking into account the individual’s personal risk tolerance or financial situation.
“Put in $100 and watch it grow,” an influencer might claim, but this kind of advice ignores the reality that crypto investments can result in significant losses.
The scope of these videos is vast.
On average, each video gets around 840,000 views, with 24,000 likes, showing just how widespread this misleading advice can be.
This level of engagement underlines the importance of recognising such content for what it is and understanding the potential consequences of following it.
For instance, timing plays a crucial role in investment decisions.
The moment a viral video is watched can significantly impact outcomes.
By the time a viewer engages, market trends may have already shifted, resulting in poor timing and potentially entering the market just as it begins to decline and crash.
Memecoins, a popular but often risky category of crypto, are also frequently promoted on TikTok.
The analysis found that 96% of the videos encouraging the purchase of meme-based coins were misleading.
To make matters worse, 82% of the meme coins featured in these videos are no longer active, often referred to as “dead coins.”
Despite this, influencers continue to promote them, possibly because of the viral potential of these assets, which often get more attention than established coins like Bitcoin or Ethereum.
Among the influencers behind these misleading videos, a tiny fraction (0.3%) hold qualifications in business, finance, or trading.
This raises questions about the credibility of the advice being shared.
A majority (70%) of influencers are simply promoting their own paid services, blurring the lines between genuine advice and self-promotion.
Influencers, who often have significant followings—around 131,000 on average—can have a huge impact on their audiences, leading many to believe that they are trustworthy financial guides.
With 70% of crypto TikTok influencers using the platform to push their own services, the risk to new investors is high.
“I’ve helped hundreds make huge profits,” an influencer may boast.
But are they telling the truth? Or is it just a clickbait?
Without a proper understanding of the crypto market, these claims may lead unsuspecting viewers down the wrong path.
The absence of relevant qualifications and the promotion of speculative assets paints a clear picture of an environment that lacks the necessary safeguards for those looking to enter the market.
Investing in cryptocurrency comes with significant risk, and as this analysis suggests, it’s essential to approach advice from TikTok influencers with caution.
Only a small fraction of the content shared on the platform is backed by legitimate expertise, and much of the guidance fails to include key disclaimers that could help viewers understand the full scope of the risks involved.
As the popularity of cryptocurrency continues to rise, both viewers and influencers must be mindful of their responsibilities in safeguarding against financial loss.
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