A popular app used for making personalized short forms of videos, Tik-Tok. It was created by Zhang Yiming. Recently, the app-based platform, Tik-Tok decided to ban cryptocurrency influencers who create content to promote cryptocurrencies like Bitcoin, Dogecoin, and others alike on their platform. Why must a social trend-creating app take a pseudo-political stance on a digital financial asset which is now creating skepticism regarding its regulations and operations around the globe? It will adversely affect the huge financial firms and many influencers with this niche of content will lose their “livelihood”. Let us see!
This is interesting and hilarious, at the same time. As this announcement came just China’s acts of cryptocurrency crackdown.
Cryptocurrency Market and Its Promoter in Facing Confusion and Resistance: Narrowed Down by The Social Media App Tik-Tok
The Chinese-owned social media platform popular for its users creating and posting short videos of 15 seconds or 30 seconds, Tik-Tok has updated its regulatory policies. According to data from NDTV Gadgets360, “Tik-Tok has updated its branded content policy to ban all influencers from promoting cryptocurrency, share trading, and buy-now-pay-later schemes.”
This announcement came with reasonable justification saying that the app didn’t support the misuse of the popular social media platform for illegal financial activities. It intends to stop the increase of scams, frauds, money laundering, financial terrorism, tricksters influencing people to lose their funds, infringement of privacy, theft of bank details, and so on. Tik Tok said that day is doing this to curb down such risk and dishonest behavior as much as possible. However, the action was committed by the app just a week post-Beijing crackdown on cryptocurrency mining operations. China has been successively preparing to shut down cryptocurrency mines and completely break down the system. China has been doing this for the “climate hazards caused by the massive energy driven by the energy-hungry Bitcoin mining computational hardware”.
Tik-Tok was a huge platform for many brands and companies where they sought influencer marketing for their products. This new update from Tik-Tok on the ban of cryptocurrency promotion by influencers in many forms will suffer a loss of cheap advertising and marketing. However, Tik-Tok policy for promotional advertising by influencers (for individuals 18+ or above age criteria) remained unchanged by other Financial Service companies. This Ban is only imposed upon cryptocurrencies promotional videos.
Tik Tok’s Revised Guidelines
The company has revised its guidelines under the report “Globally Prohibited Industries” that an umbrella ban and complete prohibition will be imposed on all branded content promoting financial services and products. The prohibition extends to “loans and credit cards, Buy now pay later (BNPL) services, cryptocurrency exchange, and trading platforms, cryptocurrency such as Bitcoin, Dogecoin, Ether &c., foreign exchange, forex trading and so on” (data referred from NDTV Gadget360).
The strategy isn’t available from India after the public authority prohibited the web-based media stage in 2020, alongside a few applications from Chinese organizations, which the public authority affirmed in January this year was a lasting boycott. Be that as it may, reports have affirmed the new strategy from Tik-Tok.
Similar Cases Of Cryptocurrency-Related Brands Promotion
Google just like Tik Tok took decisions against the advertising of financial scams on its platform. Recently, Google in the UK announced that from September onwards, a platform showcasing any Financial Service advertisement will ask the respective companies to provide identities to verify the legitimacy. This task will be conducted to clamp down on fraud and financial scams advertised on their Google Feed. This is a great initiative as they did not intend to host any sort of dishonesty on their platform.
It is noticed that companies who sponsor cryptocurrency and Crypto trading exchange platforms seek Tik Tok influencers for advertising. This is also called influencer marketing. These Financial Service influencers called “Fintok” sometimes promote misleading information to create content. Young investors who have negligible or less knowledge about the market follow these influencers into financial traps resulting in scams and frauds. Now that Tik-Tok is newly putting a stop to the cryptocurrency influencers there is a high chance of the like to make videos collaborated with financial services on social media like Instagram. the latter is still regulated in the sector. Is this a good decision on Tik-Tok’s part or is it an initiative of China to portray its power on a socio-global level?