TikTok has made the announcement about banning certain types of ads on its platform. According to this decision, ads related to crypto will no longer appear on TikTok.
As a matter of fact, the platform approves a list of content that can no longer be posted as ads. Apart from that, it also banned crypto-based promotional content.
In detail, the new TikTok guidelines highlight this:
According to TikTok’s branded content policy, the promotion of all financial services and products is now banned globally. Therefore, users on the platform can no longer post to promote financial products or services.
This decision may be related to the fact that TikTok once influenced the crypto market. Specifically, a TikTok post caused a spike in the price of Dogecoin (DOGE). A user on the platform states that the more people buy, the higher the price will be. Thus, the crypto had seen a huge rise.
Notably, other social media platforms have also contributed to controlled financial gains. For example, in the GameStop stock scenario played a few months ago, several reddit users had planned this event in advance.
Martin Bamford, head of customer education at Informed Choice, sees this move from TikTok as a way to restrict direct and indirect sponsored content. Most of these posts come with a sponsored link.
Moreover, Bamford points out that many of these posts come from poorly informed users. These users may be luring followers with false promises such as get-rich-quick scheme. But the truth is that with these promises, the goal may be to monetize their audience.
Despite the announcement, users are still unsure whether the ban includes all types of financial videos or just promotional ones. As a result, the platform seems to be starting to restrict content edits.