As the cryptocurrency market expands, authorities are keeping an eye on its rapid growth as well as its potential influence on young audiences. A recent study has revealed that over one-third of the 1.6 billion TikTok views with crypto-related content contained misleading information. The active user base consists mainly of the young, potentially inexperienced and vulnerable people, who can be exposed to scams and confidence games. That is why high-profile multi-year deals between exchanges and sports clubs, franchises and leagues, advertising cryptocurrency, were made earlier this year. However, there are also influencers and tech entrepreneurs who use the platform to promote their own products and private trading groups, neglecting to include disclaimers or warnings about investment risks. This has caused the Federal Trade Commission to order TikTok and seven other social media sites to report their anti-fraud advertising practices. Another in-depth investigation into the setting of deceptive and unfair marketing practices was launched by the FTC after the Voyager’s bankruptcy case. The owner of the Dallas Mavericks is charged in the lawsuit related to this case, highlighting the need of improved regulation surrounding the industry and its reachable audiences.



Other News from Today