All the tips and tricks are not worth it. The British watchdog has lately warned investors to remain away from such TikTok videos as apromise of high returns may turn up highly risky. Many videos are not equipped with disclaimers related to the risks involved in the investments.
Meanwhile, TikTok has confirmed to have removed such content from the platform that deceives people and takes an unlawful financial advantage.
A report by BBC found several TikTok videos are encouraging people to invest in shares of AMC, BlackBerry and GameStop. As a result, the share prices of these have witnessed a jump and the campaign is similar to what Reddit users had earlier done. Some videos are even encouraging to make an investment in Dogecoin cryptocurrency. The platform has a plethora of such deceiving videos with hashtags stockstobuy, stocktok, stocks, fintok and bigstocktips.
Many of these videos do not warn users of the risks involved and therefore cannot be considered as financial advice. Several videos recalled the past performances of markets to insist users can make a huge profit in the future. It is here to understand that past performance cannot guarantee future profits.
Similarly, a popular astrologer suggested cryptocurrency prices could be affected by the planetary positions and this is not the right time to invest in the segment as the red planet is in retrograde.
FCA spokeswoman said users should be careful about such online advice and advertisements. They should conduct their own research before making any investment.
It is never suggested to invest in an unregulated asset. Many videos are encouraging to invest in Bitcoin, Ethereum, Dogecoin and a couple of other cryptocurrencies. It is to note that TikTok lacks depth and can only be considered as fast food content. Most videos lack research and analysis.
Cryptocurrency is highly volatile. It is decentralized and completely unregulated. An investment made in the segment may lead to a complete loss of capital within an hour. Moreover, the fear of online theft of coins always exists.