45.23% Think That TikTok’s Ban Has an Effect on the Adoption of Crypto

TikTok is an app for making and sharing videos and is owned by Chinese company ByteDance. From Baby Boomers to Generation Z there is a high likelihood that one is well aware of the app. The social media platform is used to make a variety of short-form videos, that have a duration of up to three minutes. Since its launch, TikTok’s popularity has been growing tremendously.

TikTok continued to gain popularity even after former US President Donald Trump tried to ban it in America. Last year, the mobile app became the newest contender for the throne in social media platforms. It was the world’s most downloaded app in 2020 as it took the top spot from Facebook Messenger. TikTok is a glimpse into what it means to be growing up in today’s hyper-connected world.

Recently, the platform placed a ban on crypto-based content on the platform. This Real Research insight is a representation of what the public thinks about the ban.

Highlights

• 63.83% use or watch content from TikTok. More so, the most-watched genre is ‘Entertainment’.
• More than half of the respondents (51.43%) are aware that TikTok banned crypto-related content. Meanwhile, Baby Boomers have been labeled as the likely crypto promoters.
• Only 36.31% agree with the ban imposed by crypto. This is because many influencers are promoting crypto without proper crypto knowledge says 40.06%.
• 45.03% think that the ban has an effect on the adoption of crypto

63.83% Use or Watch Content on TikTok

The Real Research survey results show that 63.83% of the respondents use or watch content on the TikTok platform. In detail, TikTok is available in over 150 countries and has over 1 billion users. More so, the app has been downloaded over 200 million times in the United States alone. Hence, the reason why most respondents use or watch content on the platform.

On the other side of the Real Research survey results, 36.17% of the survey participants do not use or watch content on TikTok. Various content is played on TikTok including paid promotions of cryptocurrency before the ban. Therefore, the Real Research survey sought to know the type of content that users watch most on TikTok. Here are the top five.

Firstly, the majority 44.01% say they watch for ‘Entertainment’. Following after is dance/music/singing (11.60%). Then, pranks (5.15%), crypto content (2.85%) and fitness/sports (1.37%). However, paid promotions of cryptocurrency and branded financial services, in general, have been prohibited on the TikTok platform.

Baby Boomers Promote Crypto Content the Most on TikTok

Generations have come with different interests and trends. With this said, which generation uses TikTok the most to promote Crypto content?

Results derived from the survey conducted on the Real Research online application show that Baby Boomers (28.85%) promote crypto content the most on TikTok. Baby Boomers are those born between 1946 to 1964. People in this age group are now established financially and own various businesses.

Hence, they are well able to sponsor content and influencers to promote content on different platforms. Thus, Baby Boomers are branded as the generation that promotes crypto content the most. Following after is Generation X (16.80%), and Millennials (6.85%). Also, Generation Z (5.75%) and Generation Y (5.23%).

Additionally, the results show that 51.43%  are aware that TikTok banned crypto-based content on its platform. While the remaining percentage of over 48% is not aware.

TikTok Bans Influencers From Promoting Crypto

TikTok’s ban on sponsored crypto content has gone viral and many wonder what might be the cause. The video-sharing app has updated its branded content policy to ban all financial services and products.

40.06% state that TikTok implemented this decision because too many influencers are promoting crypto. More so, they are doing it without much knowledge regarding crypto.

Additionally, 14.42% say that ‘Misuse of the platform to commit fraud, scams and dishonest behavior. Furthermore, 7.48% note that it’s because of too many illegal companies promoting fake giveaways. Also, 2.65% say it is because of the crypto regulations by the Chinese government. 

As a result, 36.31% ‘Highly Agree’ with TikTok’s ban on sponsored crypto content. To add on, 13.29% ‘Somewhat Agree’ and 28.36% are ‘Neutral’. On the other side, 6.28% ‘Somewhat Disagree’ while 15.77%  ‘Highly Disagree’.

The Ban by TikTok Affects Crypto Adoption

Many crypto-trading companies use influencers for crypto advertisements on TikTok, known as ‘Fintok’ advisors, to grow their reach. Sponsored content related to cryptocurrencies has allegedly given people misleading and unregulated financial advice about investing in assets like Bitcoin and Dogecoin.

45.03% of the respondents said ‘Yes’ the ban has an effect on the adoption of cryptocurrency. 22.47% say that the band has no effect on the adoption of crypto. Lastly, 32.30% are unsure.

More so, what measures can TikTok impose to filter sponsored content related to cryptocurrencies?

Real Research users gave their opinion on other measures that TikTok can impose other than a ban. Allow only registered and legitimate companies to promote their content (44.37%). Secondly, allow direct advertisements from crypto companies and not influencers (10.10%). 

Furthermore, TikTok should censor and check content being shown on the platform (6.95%). Concurrently, 6.38% note that a ban is the best decision.

In conclusion, the social media platform — TikTok, stands with its decision on banning influencers from promoting cryptocurrency. The ban, introduced to its content policy, restricts what the platform calls ‘branded content’, or paid advertisements. Other than placing a ban, respondents have suggested that TikTok should only allow registered and legitimate companies to promote their content.