• Tue. Feb 27th, 2024

TikTok’s New Policy Aims to Limit Crypto Content Outreach

Christian Klausen

ByChristian Klausen

Jul 12, 2021

TikTok is a new social media platform that is like an all-inclusive club for many. The recently revised policy for branded content for cryptocurrencies has sparked a new conversation on the matter. The new policy seems to be limiting the outreach of the crypto enterprises and projects that were being promoted on the said platform.

TikTok hails from China and has a 1 billion active user base. The dominant account holders and influencers present on the said platform are students, interns, and members of Gen Z. The new policy will limit the reach of financial services and products among users below 18 years of age.

TikTok has Become a Favourite Spot for Scammers

On the whole, the general advertisement policy on TikTok has remained the same. However, it will not be possible for crypto loan services, trading sites, forex operators, and commemorative digital coins to advertise on TikTok. For many young users, TikTok is the means of information for financial information.

The dedicated social media hubs like Stocktok and Fintok have gained a reasonable amount of followership on Tiktok. Some legitimate businesses are operating here, but the platform has come under fire for allowing unregulated financial advice accounts. There are also threat actors who can easily spread false information and speculations about crypto-related news among the inexperienced audience.

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There are countless influencers on social media that have the appearance of a celebrity among its predominantly young and impressionable young user base. The Informed-Choice Client Education Head, Martin Bamford, told the FT advisor that the policy change would halt the increasing number of sponsored content aiming to pump different blockchain projects.

The new policy of the social media giant will not stop threat actors from approaching the users on TikTok. The official financial businesses and crypto enterprises will also have to be more careful about their stance on crypto content marketing. Considering the demographics, TikTok is a viable medium for crypto-related businesses to approach new clients and get them to sign up for crypto-related sites with the incentive of getting free giveaways.

Christian Klausen

Christian Klausen

Christian Klausen is a talented news writer renowned for his compelling storytelling and comprehensive research. With a sharp eye for detail, his articles offer readers a thought-provoking and well-informed perspective on a wide range of current topics.

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