The social network TikTok prohibited its users from including commercial cryptocurrency ads and promotions in its posts.
Now influencers and content creators, who get thousands of views globally, will not be able to include links and promotional information in their videos about financial products, cryptocurrencies, exchanges, investment schemes, credits, bonuses, and others, according to an announcement held last Friday, July 9, 2021.
Users who have creative or business accounts on TikTok, around the world, will not be able to promote content of commercial brands of products related to alcohol, tobacco, contraceptives, dating applications, drugs and drugs, weapons, supplements and vitamins, sexual products, purchase and sale of animals, financial services, among others. Cryptocurrency projects and brands are added to these items.
Updated policies for the protection of users
TikTok defines branded content, in its post, as a content type where the user receives some value compensation in exchange for making a post about a brand.
Although this activity is not prohibited, as well as advertising, TikTok ensures that users must adhere to the new terms and conditions, which will be updated periodically.
Although it could be intuited that this restriction has to do with the wave of prohibitions in China, since TikTok is a company based in that country, the truth is that it is not completely prohibited to publish content about cryptocurrencies on the social network.
TikTok stated in its post that these policies are designed to maintain a friendly environment for its users. Influencers could raise user expectations too high and compromise their financial integrity, leading them to take investment risks in unstable assets.
Even worse, users could be victims of fraudulent investment schemes, pyramids and other offers of doubtful origin and credibility. Therefore, this measure seeks to neutralize as many potential threats as possible.
TikTok, space for viral phenomena of the cryptocurrency industry
TikTok, one of the most popular social networks in the world, has become the home of influencers highly sought after by brands. The cryptocurrency industry is not free to pay these personalities in exchange for them to show support for a brand in one of their posts.
As CriptoNoticias has reported, Reddit has been the place from where the most campaigns have been carried out to collectively boost the price of assets such as AMD, GameStop and cryptocurrencies such as Dogecoin (DOGE) and Ripple (XRP), among many others. But TikTok also encompasses a large share of responsibility in these viral financial phenomena.
Cryptocurrency project communities often upload educational content to TikTok, often at no cost or surcharge to the project for their initiative.
However, with the high capitalization that these projects can acquire, their leadership teams usually allocate an item for marketing and advertising. TikTok and its influencers are one of the focuses of this brand strategy.