TikTok ban shakes the cryptocurrency world: will it collapse?

As TikTok faces a potential ban in the US, the cryptocurrency sector is wondering what its impact will be on the market. The ban, part of the Protecting Americans from Foreign Controlled Apps Act, will go into effect on January 19. It was signed into law late last year, prohibiting the Google and Apple app stores from hosting TikTok. Additionally, web hosting services should stop providing support for the platform.

TikTok, the second most used social media in the United States, is used by 41% of adults. In 2023, it was created $6.2 billion In advertising revenue. The legislation cites national security threats due to TikTok’s ownership by a Chinese company. Therefore, ByteDance faces a choice: sell its US operations or continue in the region without operating as TikTok.

The decision has now gone to supreme court The court is expected to issue its final ruling before January 19. President-elect Donald Trump, a crypto sympathizer on the platforms, has also contributed to the TikTok rescue campaign, filing an injunction to counter the restriction. Some senators, such as Ed Markey, have also criticized the legislation not only for its targeted impact but also for what it means for innovation in the digital world and freedom of expression.

TikTok’s role in shaping cryptocurrency engagement and adoption

TikTok has become an important haven for cryptocurrency content and actions and has played a connecting role between decentralized currencies and young, tech-oriented audiences. Despite regulators’ concerns, the app has hosted several cryptocurrency initiatives:

According to the United Kingdom Financial behaviour In October 2024, by the FCA, TikTok came under scrutiny in relation to its virtual gifting and ordering system through TikTok Coins.

These coins can be exchanged for “diamonds” and later exchanged for money with characteristics of cryptocurrencies. The financial watchdog also cited threats such as money laundering and a lack of consumer protection.

Sonic, a layer 2 blockchain based on Solana, distributed its SONIC tokens in December 2024 solely through TikTok. Sonic was about to attract over 2 million users by implementing its SonicX game into the app, demonstrating the scalability of the platform to increase… Blockchain adoption.

TikTok’s impact on cryptocurrencies saw its light in #Dogecoin TikTok Challenge Which saw crypto influencers increase demand for DOGE by 20% within one week. These examples illustrate the company’s role in shaping the so-called crypto culture and supporting activism in the context of digital assets.

As we saw earlier in this article, regardless of the origin of the reels, analysts claim that a TikTok ban in the US will not significantly impact the long-term outcome of the cryptocurrency market.

Alejandro Zambrano, chief market strategist at ThinkMarkets, says TikTok has been primarily identifying content to impact the industry in a small way. In July 2021, TikTok also made an update to its content policy by implementing a permanent ban on anything related to finance such as cryptocurrencies, due to unpleasant cases of giving incorrect advice as well as high-risk scams.

According to Zambrano, TikTok has been censoring cryptocurrency content for years. “A complete ban will not lead to radical changes in the cryptocurrency industry since the platform has backed away from declaring cryptocurrencies as a priority investment opportunity.”

While TikTok’s absence in the US could hinder the main avenue of cryptocurrency promotion, the industry has already branched out to other platforms including Twitter, Reddit and Instagram. Other applications entering the scene are Threads and Lens Protocol which can also be used for crypto content creation.

The TikTok ban issue raises questions about how the social media apps are related Cryptocurrencies. While regulatory authorities and hosting platforms are constantly tightening the screws, new cryptocurrency projects have to navigate through different regions and discover new means to reach their target audience.

As the date for the court ruling approaches Bitcoin The community will know whether the TikTok event is the beginning of a new chapter in the Bitcoin movement or the conclusion of a glorious chapter in Bitcoin culture.