More than 30% of TikTok content regarding cryptocurrency investments is deceptive, according to a study.

According to a recent study, over one-third of influencers on TikTok, the preferred social media platform for younger audiences, have been identified as posting misleading videos regarding Bitcoin (BTC) and cryptocurrency investments.

TikTok has gained popularity as a video-centric alternative to traditional Google searches. Nevertheless, some influencers have been found to disseminate unverified misinformation on the platform concerning crypto investments, often attempting to persuade unsuspecting viewers to invest their (or their parents’) hard-earned money into unprofitable cryptocurrencies.

Influencers on TikTok utilize the hashtag ‘#cryptok’ when sharing crypto-related content. An examination of more than 1,161 TikTok videos — carried out by dappGambl — indicated that over one in three crypto TikToks contained misleading information. The study also discovered that only 1 in every 10 cryptok accounts or videos included any form of disclaimer alerting users to the risks associated with investments.

Among these, 47% of TikTok creators were found to be promoting services aimed at generating income. Prominent influencers, such as Kim Kardashian, Jake Paul, and Soulja Boy, have also faced accusations of endorsing cryptocurrencies to their vast audiences without revealing any compensation received.

The United States Securities and Exchange Commission compelled Kim Kardashian to pay $1.26 million in fines for her promotion of EthereumMax (EMAX). While TikTok influencers may have a smaller audience compared to mainstream figures, the potential financial risks for unsuspecting investors remain significant.

The research further indicated that one in three misleading TikTok videos referenced Bitcoin. Additionally, videos on TikTok featuring popular crypto-related hashtags — including crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading, and cryptoinvesting — have collectively amassed over 6 billion views.

Viewers frequently overlook the questionable motives of their favorite influencers and tend to trust their content solely based on the high number of views or likes. Both novice and experienced investors are encouraged to conduct thorough research on crypto projects before making any investment decisions.

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Related: How a TikTok ban in the US could affect the crypto industry

On April 2, a $1 billion lawsuit was initiated against crypto exchange Binance, its CEO Changpeng “CZ” Zhao, and three crypto influencers for promoting unregistered securities.

“This is a classic example of a centralized exchange, which is promoting the sale of an unregistered security,” stated the lawsuit filed by the Moscowitz Law Firm and Boies Schiller Flexner.

As reported by Cointelegraph, the lawsuit claims that “millions” of individuals may be entitled to damages.

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