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A Major Blow to Advertisement: Tik Toks Crackdown on Cryptocurrency

On June 10, 2021, popular social media outlet Tik Tok updated its Branded Content Policy. It now states, “All financial services and products are prohibited, including but not limited to … cryptocurrency.” As one of the most popular social media platforms in the world, this will be a major hit to many marketing policies as the app continuously increases in popularity. In addition, Tik Tok is especially popular with the younger demographic: users under the age of 35 take up the highest percentage of users on the app. This is important to know since the majority of cryptocurrency investors and those likely to invest fall into the 18-40 age range. 

 

The shutdown of advertisements about cryptocurrency comes after a surge in concern over misleading information being spread across the app causing naive investors to put their money into bad investments such as various cryptocurrencies, cryptocurrency courses, financial advice, etc. It’s especially a big concern towards a younger demographic since they’re more likely to use the app and invest in cryptocurrency. This is also why Tik Tok has shut down such branded advertisements of “limited to lending and management of money assets, loans and credit cards, buy now pay later (BNPL) services, trading platforms,... foreign exchange, debit and pre-payment cards, forex trading, commemorative coins, pyramid schemes (including non-financial services), investment services, credit repair services, bail bonds, debt assistance programmes, get rich quick schemes, debt consolidation services and penny auctions.” It appears that Tik Tok wants to prevent a growing reputation of an app that easily spreads misinformation which could hurt the company's growth long term. Over 30 countries, including the U.S, have implemented bans on Tik Tok advertisements about cryptocurrencies and crypto trading platforms.

 

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