- TikTok recently banned financial ads on its platform, singling out crypto ads as one of the categories that it no longer permits.
- Crypto News Flash talked with two cryptocurrency experts who had their say on what the ban means and what’s in the future for crypto.
TikTok, one of the world’s leading social media platforms, has banned the promotion of various financial services and products, including cryptocurrencies. As per a new report, the platform has updated its branded content policy to ban influencers from pushing cryptos. This comes at a time when TikTok had become a haven for crypto influencers and even led to substantial pumps for cryptos such as Dogecoin.
According to FTAdviser, which broke the story, the ban will encompass cryptocurrencies, lending and management of money assets, pyramid schemes, get-rich-quick schemes and foreign exchange.
TikTok has become a global sensation, especially since the COVID-19 pandemic struck and confined billions of people indoors. It now boasts of over 1 billion monthly active users, more than Reddit and Snapchat combined. As such, it has become an important platform to push products, and cryptos have not been exempt.
Just days ago, Dogecoin pumped by 20 percent following a TikTok push. Known as the #DogecoinTikTokChallenge, it attracted millions of users, all with the goal of pumping the memecoin to $1. “Let’s all get rich! Invest just $25. Once the stock hits $1, you’ll have 10 grand [$10,000]. Tell everyone you know,” one of the most popular posts on the platform read.
And now, such pumps will get you booted out of TikTok. But according to one expert, this was not a surprise, at least not to the crypto community.
Oleg Bevz, the marketing director at Blockster a full-featured social network dedicated to the crypto community, told Crypto News Flash:
TikTok banning crypto-related advertisements doesn’t sound in the least bit surprising. It just demonstrates once again that, despite the growing adoption, a number of traditional businesses still shun crypto. Legacy companies with a more conservative business approach try to steer clear of change and things they cannot fully control – in this case, cryptocurrencies, which are undeservedly connected to fraud and criminal activities in many minds.
‘TikTok ban will benefit crypto’
This isn’t the first time that cryptos have been banned by a global tech giant. Google, Facebook, Twitter, MailChimp, LinkedIn, and Bing have all banned crypto ads in the past. Some like Google turned around and re-accepted crypto ads, however.
Having seen all the other bans unravel, Oleg believes that the current TikTok ban will only benefit crypto. He told us:
I believe the crypto industry will only benefit from this ban. It’s rapidly growing, rich in all senses. More and more people and entities are getting interested in cryptocurrencies, and if traditional businesses continue to reject it, the industry will direct all resources inward, powering its own development.
The ban, just like with all the previous ones will serve to thwart crypto-related crime. Scams that pose as crypto investments have been on a rise, including a South African one that made off with $3.6 billion.
And while thwarting crypto crime will be beneficial to all involved parties, “Sadly, it also closes the possibility of advertising even for licensed companies.” Tatyana Shpakovych, the product manager at Blockster tells us.
In my opinion, it would be a better choice not to remove the possibility of advertising for these industries altogether but to develop more sophisticated verification mechanics and, possibly, introduce a more thorough moderation. Then users would be sure the content they receive is safe, while companies would still enjoy the global reach the platform gives them.