TikTok

Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram

Recipients need to download a Coinbase Wallet to receive the funds, but the crypto exchange says they’ve simplified the process for less tech-savvy users.

A new feature from Coinbase Wallet allows for the transfer of crypto through a link that can be sent through some of the most popular social media sites and messaging apps as the crypto exchange looks to make its service accessible to a wider market.

“Users can now send money on any platform that they can share a link,” Coinbase said in a Dec. 5 blog post, naming apps like iMessage, Telegram, WhatsApp, Facebook, Instagram and TikTok.

There’s no payment fee when sending USD Coin (USDC), a U.S. dollar stablecoin Coinbase co-launched in 2018 with its issuer, Circle.

Potential US ban is a reminder that influencers should dump TikTok

With TikTok facing the prospect of removal from the United States, users should realize that traditional tech companies are far less reliable than the decentralized web.

With a recent proposal by a member of the United States Federal Communications Commission (FCC) to ban TikTok, influencers are scrambling. If the FCC makes good on the ban, TikTok creators could lose their fanbases and revenue streams overnight.

People are often skeptical about Web3, many of them influencers and digital content creators. Notably, many of those most reluctant to embrace Web3 are very successful on Web2. Since they’ve mastered monetization on popular Web2 platforms such as TikTok, Twitch and others, why bother learning the rules of a new game?

The current regulatory debate around restricting TikTok in the U.S. provides a salient example of the risks associated with Web2 platforms, and why embracing Web3 can both benefit and protect influencers and their fans. The value add of Web3 is twofold — autonomy and insurance. Let’s hope this TikTok proposal provides a wake-up call for influencers everywhere.

Cutting out the middleman

There is a common misconception (not helped by the name) that Web3 is here to replace Web2. Rather than thinking about Web3 as a “new web,” it’s best to think about Web3 as a new channel. Web2 isn’t going anywhere soon, and as a creator, it’s smart to monetize as many platforms as possible. Influencers should think of it this way: If TikTok was announced today, would you reject it out of hand just because you were already successful on YouTube? Of course not. It’s the same with Web3.

In a Web3 world, where digital content can be “tokenized” as NFTs, creators can set their own payment terms, and fans can actually own the digital item that they’re paying for, whether that be an artwork, a video, a piece of music, etc. NFTs can include royalty parameters, so creators and collectors can benefit directly from the proceeds of secondary market sales. That kind of recurring revenue stream doesn’t exist on traditional Web2 content platforms.

Protecting your content for the long term

For successful influencers, censorship and “de-platforming” represent a major threat to their revenue, but many creators see it as an abstract risk. They argue that the removal of bad content is necessary and big tech companies can be relied upon to make sensible decisions. And anyway, good, rule-abiding creators like themselves won’t run afoul of moderation, right? They also seem to believe that platforms like Twitch, TikTok and Instagram are so successful that they’ll be around forever. Sadly, none of these arguments hold up.

In fact, popular platforms don’t stick around forever (remember MySpace and Vine?), and rule-abiding content creators get censored all the time. With so much content on their platforms, companies are forced to rely on automated solutions that frequently get things wrong, with costly consequences for creators. Healthy online communities need rules, and moderation is necessary in order to enforce them. But, if you’re a creator with an archive of valuable content, there’s a chance that your content will be lost or become unavailable to your fans.

Web3 is different because it’s built on blockchains (or public ledgers) where data is added but never deleted or changed. Blockchains are decentralized by design, which means the data isn’t sitting on a server somewhere controlled by a big tech company; instead, a large network of nodes around the world maintains the accuracy of the network, making it transparent and virtually impossible to hack or corrupt.

An example of the resilience of Web3 platforms happened last year when the founder of Tezos-based NFT marketplace Hic et Nunc decided to abruptly shut down the project, leaving half a million NFTs in digital limbo. But, because Tezos is a public blockchain, and because the platform was built on Web3 open-source principles, the Hic et Nunc user community was able to relaunch it within hours, without serious disruption to sales. Imagine doing that with Instagram or TikTok.

Although a direct Web3 equivalent of TikTok doesn’t exist yet, it’s only a matter of time. And if you’re a digital content creator, there’s no need to wait. Web3 makes it possible, right now, to broaden your options for monetization and audience engagement through NFTs and other mechanisms. Creators should leverage as many platforms as possible. Web3 is what comes next — and it’s coming faster than you think.

Mark Soares is the founder and chief marketing officer of Blokhaus, a marketing and communications agency supporting global activities for the Tezos blockchain ecosystem. He was previously the general manager of marketing and communications at Nikon Inc., where he oversaw branding, product and content marketing, influencer activities, and more.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The future of DeFi is on TikTok

The younger generation doesn’t have disposable income now, but they’re financially savvy thanks to short-form videos on social media

In July 2021, TikTok hit three billion downloads. The social network boasts more than one billion active monthly users. And, in the United States, TikTok is now more popular with Generation Z than Instagram.

Over the last six months, Bitcoin (BTC) has seen a drop of more than 70% from its all-time high north of $69,000 in 2021. Market volatility is to be expected. But, if decentralized finance (DeFi) is looking to have a future, it needs to be embraced by more people. The aforementioned volatility (as well as the cynicism of cryptocurrency in general) puts many investors off. Fortunately, members of Generation Z are far from your typical investors.

Digitally savvy and financially literate

Finance on TikTok has become so popular that it has got its own portmanteau. Dubbed FinTok, finance-related content has seen a meteoric rise along with the social network itself. Last year, the #Crypto hashtag blew up, getting 1.9 billion videos. Uploads tagged #NFT increased by a mind-melting 93,000% (further fueled by the general boom in NFT interest). And, videos with the #StockTok hashtag garnered 1.4 billion views.

The glut of money management videos isn’t limited to the crypto market. Last year, the #PersonalFinance hashtag accrued more than 4.4 billion views, with content covering everything from tax and budgeting to savings and debt. Considered in the context of TikTok’s primary users — Generation Z — it shows that the youth of today have a healthy appetite for financial information. They just want to consume it soundtracked by a catchy pop song and a viral dance.

Young adults are also leading digital asset adoption. According to the “Invest in You” survey by CNBC, 18-34-year-olds accounted for 15% of cryptocurrency investments, compared to 11% for 35-64-year-olds and a measly 4% for 65+. The problem is, a considerable segment of that 18-34 year old demographic sees crypto as a short-term investment: 21% of 18-34-year-olds only regard it as a 12-month strategy.

*15% of 18-34-year-olds say they own cryptocurrency. Source: CNBC*

It’s no surprise that Gen Z is not only embracing cryptocurrency but also educating themselves regarding finance. According to Credit Suisse’s global investment returns yearbook, Gen Z will earn a third less on traditional stock and bond investments than past generations.

December’s “OK Zoomer” research report from Bank of America revealed that the COVID-19 pandemic will hit Generation Z’s professional and financial future in a similar way that the Great Recession impacted Millennials. Therefore, although the majority of Generation Z don’t have a lot of money to invest in crypto right now, they could in the future, especially if they’re as financially savvy and investment-driven as the data suggests. And, that’s where the opportunity lies for DeFi.

Building trust in digital assets through transparent marketing

For the future and health of the digital asset market, DeFi firms need to engage the right audiences in specific ways targeted to those demographics.

Similar to how DeFi promises to democratize finance, social media platforms such as TikTok have the potential to democratize the investing process. What was once a closed community only accessible for the likes of Wall Street bankers and qualified hedge fund managers is now open to everyone.

But, if DeFi is to capitalize on the opportunities available via the trendiest social media platform, it’s going to have to get better at marketing. This means clear and concise short-form videos that are tailored to the target audience, making crypto not just accessible but fun too, while also being transparent about the risks inherent in investing.

Short videos are playing well on TikTok. But, they’re predominantly top-of-the-funnel activities. That’s not necessarily a bad thing. Brands can warm up the Generation Z audience now so that in a few years, when they have the money to invest, they’re knowledgeable leads ready to be converted.

It’s this conversion content that’s needed. Crypto companies need to build trust in the audience over the next few years. No mean feat considering the turbulence and bad press the bear market has experienced lately.

DeFi firms must stay transparent, distinguish themselves from TradFi brands and figure out what forms of video content will build long-term, trusting relationships with the younger generation. If crypto companies learn how to speak their language today, tomorrow could be bright for bitcoin and other digital assets.

Zac Colbert is a digital marketer by day and freelance writer by night. He’s been covering digital culture since 2007.

TikTok data policy debacle: Is user’s crypto at risk?

Could data security concerns raised over TikTok’s operations in America put cryptocurrency users’ coins at risk?

TikTok continues to gather a head of steam, with the popular social media application surpassing one billion users in 2022. While daily users blissfully swipe through the latest videos from their favorite content creators, data security concerns continue to ask questions of the Chinese social media behemoth.

The company has faced criticism over the past couple years relating to security concerns over data collection policies despite the popularity and prolific onboarding of users around the world. Cryptocurrency users have also questioned whether critical data like private keys to wallets could be scraped by the alleged data practices of TikTok.

United States Federal Communications Commissioner Brendan Carr called for Apple and Google to remove TikTok from their app stores in June 2022, claiming the app “harvests swaths of sensitive data that new reports show are being accessed in Beijing.”

TikTok is not just another video app.
That’s the sheep’s clothing.

It harvests swaths of sensitive data that new reports show are being accessed in Beijing.

I’ve called on @Apple & @Google to remove TikTok from their app stores for its pattern of surreptitious data practices. pic.twitter.com/Le01fBpNjn

— Brendan Carr (@BrendanCarrFCC) June 28, 2022

Two years prior to this, cyber intelligence firm Check Point Research released a report highlighting vulnerabilities within the TikTok application. This included the ability to take control of TikTok accounts and manipulate their content, delete and upload unauthorized videos, make private “hidden” videos public as well as gaining access to private email addresses and mobile numbers.

The firm shared these discovered exploits with TikTok in late 2019 and the company deployed solutions to the vulnerabilities. Check Point Research told Cointelegraph that it has not conducted further research into TikTok’s code since its original examination.

TikTok uses HackerOne to reward code sleuths through its bug bounty program. The initiative rewards the discovery of security vulnerabilities, with different reward bands for the severity of the bug discovered. Since the current bounty table was instituted in October 2021, TikTok has paid out $539,000 in bug bounties.

Cointelegraph reached out to TikTok for comment on concerns expressed about its data security and collection practices. A company spokesperson shared a broad range of published resources addressing the subject of its data collection practices and claims against it.

TikTok stores user data in Singapore and the U.S and employs access controls including encryption and security monitoring from its American-based security team. Access to this data is behind a number of control mechanisms and the company maintains that user data is not accessible in China, as has been claimed by individuals like the FCC’s Carr in America.

The spokesperson also noted that the application’s clipboard access is controlled by the user, in lieu of a report from the Financial Review in July 2022 that claimed this function was automatically enabled by TikTok. This could potentially risk any confidential messages or passwords copied onto a user’s clipboard.

Coins not at risk but phishing is a reality

Cryptocurrency users can breathe a sigh of relief, as security experts agree that using or having TikTok on a mobile device does not directly place cryptocurrency wallets and exchange apps at risk of being compromised.

Bree Fowler has been following TikTok data concerns as a senior cybersecurity and privacy writer for CNET over the past couple of years. The journalist believes TikTok users should not be concerned about using other apps alongside TikTok, telling Cointelegraph:

“State sponsored hackers aren’t going to go after regular people this way. I’d be more worried about shady crypto apps and exchanges. It’s much easier to just send phishing emails.”

Fowler warned users to deny TikTok from tracking activity across a device as an added precaution, to review the app’s privacy permissions and store cryptocurrency in offline (cold) wallets.

Cointelegraph also reached out to cybersecurity firm Kaspersky’s security expert Anna Larkina, who believes there is merit in the questions being asked of TikTok’s data collection policies:

“The amount and type of data that TikTok collects about its users imposes a corresponding degree of responsibility for their safety. There does appear to be a need for maximum transparency in where exactly this data goes, especially if we are talking about third parties, which is extremely difficult to track.”

Larkina noted that the sum of all this data holds a substantial amount of information about an individual user, with the potential cost of a data leak not to be taken lightly.

The biggest threat highlighted by both experts is the potential for user data to be compromised and then used in coordinated phishing attacks. With the amount of information stored by TikTok, including what applications are installed on your device, attackers could potentially plan targeted attacks on individual users.

Larkina also warned users not to copy and paste login and password details on devices that have TikTok installed and to limit the app’s ability to collect data.

Politically charged situation

Politics have been intrinsically tied into the situation around TikTok and its popularity and use across the world. Former U.S. President Donald Trump’s administration moved to ban TikTok and WeChat from operating in America, which thrust the issue to the fore.

Fowler believes it’s unclear whether concerns raised over the past two years are warranted and that political motivations are at play as well. While most associate TikTok with harmless videos that have captivated young audiences, Fowler remained skeptical of the situation:

“On the surface, that doesn’t seem super personal or that it would be of any use to the Chinese government. But the more information any group or person has about you, the more they can use it to their advantage, whether it be for data mining, cybercrime, or more nefarious purposes.”

Given TikTok’s massive reach, the platform has also become a prime advertising avenue for the cryptocurrency space. Binance made headlines in June 2022 as they struck an ambassador deal with TikTok’s most followed influencer Khaby Lame to create Web3-focused educational content.

The platform also plugged into the nonfungible token (NFT) universe with its own collection of NFTs from a handful of its most prominent content creators, celebrities and influencers in September 2021.