- Social platform TikTok Prohibited Crypto advertisements.
- TikTok was a hotbed for Dogecoin (DOGE) hype.
- Many of the social platform promotion ads sell false promises.
On July 9 TikTok announced the prohibition of financial services products promotion including investment and cryptocurrency. According to an article from FT Adviser on July 8, promotional-based crypto content included among the now-verboten topic.
Moreover, the new guidelines on sites that post-social videos especially stop users from posting promotional content about financial products. Despite the geographical location of the creator.
Henceforth, FT Advisors, stated,
“According to TikTok’s branded content policy, the promotion of all financial services and products now prohibited globally”.
Accordingly, the platform noted its policy included, but not limited to, lending and management of money assets, cryptocurrency, foreign exchange, pyramid schemes, investment services and get rich quick schemes, including others.
In 2020 TikTok was a hotbed for Dogecoin (DOGE) hype when the users shared related videos to get more individuals to jump on the bandwagon. Even more, in recent months, other social platform sites have also hosted financial markets discussions.
Additionally, Martin Bamford, Informed Choice’s client education head, stated, “We see a huge amount of this branded content on Tiktok, usually from poorly informed commentators, who lure in followers with promises of riches. But in reality, are making their money off people signing up via affiliate links.” The view is that many of the social platform promotion ads sell false promises to TikTok users.
Conversely, it is unclear whether the TikTok ban applies to all ads of financial products or only the promotional ones. In addition, in 2018 Google had prohibited crypto ads.
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