TikTok social network banned its users from including cryptocurrency commercial ads and promotions in their posts.
Now the influencers and content creators, who obtain 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, bonds, and others, according to an announcement made last Friday, July 9, 2021.
Users who have creative or business accounts on TikTok, around the world, will also not be able to promote branded content of products related to alcohol, tobacco, birth control, dating apps, drugs and drugs, weapons, supplements and vitamins, sex products, buying and selling animals, financial services, among others. Cryptocurrency projects and brands add to these items.
Updated policies for user protection
TikTok defines branded content, in its publication, as a type of content where the user receives some value compensation in exchange for doing a post about a brand.
While this activity is not prohibited, as well as making advertisements, TikTok assures that users must adhere to the new terms and conditionswhich will be updated periodically.
Although it could be intuited that this restriction has to do with the wave of bans 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 his post that these policies are designed to sustain a user-friendly environment. The influencers they could raise users ‘ 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 schemespyramids and other offers of dubious 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 requested by brands. The cryptocurrency industry is not free to pay these personalities in exchange for showing support for a brand in one of their posts.
As CriptoNoticias has reported, Reddit has been the place from which most campaigns have been conducted to collectively drive the price of assets such as AMD, GameStop and cryptocurrencies such as Dogecoin (DOGE) and Ripple (XRP), among many others. But TikTok also holds a large share of responsibility in these viral financial phenomena.
Communities of cryptocurrency projects usually 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 management teams usually allocate a lot for marketing and advertising. TikTok and his influencers they are one of the focuses of this brand strategy.