With TikTok’s parent company ByteDance eating away at US companies’ metaverse market share, a bill to ban TikTok could be introduced in the US Congress, impacting crypto influencer earnings.

A House committee today introduced new legislation that would give the Biden administration the power to ban short-form video-sharing platform TikTok.

TikTok could be used to spy on China, says former FCC chief

Ajit Pai, former chairman of the U.S. Federal Communications Commission, told CNBC today:

“There is a growing bipartisan perception that TikTok is an app that will eventually come under some form of control by the Chinese government.”

Banning TikTok for US users could direct users to products such as YouTube “shorts” and Instagram Reels operated by US companies.

In 2020, Pai accused Chinese carriers Huawei and ZTE of ties to the Chinese Communist Party and warned US carriers against using their equipment.

Similar to the TikTok allegations, Pai said wireless device makers have a legal obligation to comply with requests from China’s secret police. FCC Banned Equipment sales and imports from Huawei and ZTE in November 2022.

The ban could also come at a convenient time for ByteDance competitor Meta. Share of the VR headset market at the heart of Metaverse ambitions was recently ceded to Pico, a company owned by ByteDance. In Q3 2022, Pico grabbed his 15% market share for Meta’s VR Quest headset. Meta’s metaverse division, Reality Labs, recorded a revenue hit of 17% in Q4 2022 as European consumers went wild for Pico.

Meta is also grappling with declining engagement in the Horizon Worlds metaverse as weekly user retention dropped to 11% in January 2023.

Headwinds intensify for TikTok influencers after last year’s collapse

Bloomberg opinion columnist Lionel Laurent predicted in June 2022 that social media censorship would follow last year’s market crash. Crypto Influencer Earnings on New Signups Following the Collapse of TerraUSD and Celsius Dropped 90 and above.

TikTok’s US ban could further reduce user revenue for influencers. Maximum number 113 million TikTok users. August 2022 piece The World Economic Forum suggests that Gen Z is about five times more likely to seek financial advice from influencers.

According to the UK’s Financial Conduct Authority, these willing investors are more likely to invest in cryptocurrencies because of the hype on social platforms such as TikTok. Investments are driven by influencers who pump crypto projects to typically young, risk-hungry investors who are fed up with the current financial system.

TikTok Crypto Influencer Dennis Liu Said 2021 shows that the platform provided the greatest opportunity for user growth. Another crypto influencer, CryptoWendyO, is using it to promote a “moon bag” strategy. This method withdraws money from a project after making a profit and moves the funds to another project.

CryptoWendyO said he was convinced to join TikTok because of its ability to quickly disseminate large amounts of information. A well-known influencer, BitBoy persuaded CryptoWendyO to test the platform’s potential.

Forbee[In]Click here for Crypto’s latest Bitcoin (BTC) analysis.

sponser

sponser