TikTok reached three billion downloads in July 2021. The social network has over a billion monthly active users. The platform has become more widely known among Generation Z in the United States than Instagram.

Financially and technologically savvy

Finance has grown so popular on TikTok that it has its own portmanteau. Finance-related content, dubbed FinTok, has skyrocketed alongside the social network itself. The #Crypto hashtag went viral last year, receiving 1.9 billion videos. Uploads with the hashtag #NFT increased by a mind-boggling 93,000%. In addition, videos with the hashtag #StockTok received 1.4 billion views.

The abundance of money management videos is not limited to the cryptocurrency market. The #PersonalFinance hashtag received over 4.4 billion views last year, with content ranging from tax and financial planning to savings and debt. Viewing through the lens of TikTok's primary users — Generation Z — demonstrates that today's youth have a large appetite for financial information. They just want to watch it while listening to a catchy piece of music and doing a viral dance.

Youngsters are also driving the adoption of digital assets. According to CNBC's "Invest in You" survey, 18-34-year-olds attributed for 15% of cryptocurrency investments, 11% for 35-64-year-olds, and 4% for those 65 and older. The problem is that a sizable portion of the 18-34 age group views cryptocurrency as a short-term investment: 21% see it as a 12-month strategy.

It's no surprise that Generation Z accepts cryptocurrency and learns about finance. According to Credit Suisse's global investment returns yearbook, traditional bond and stock investments will garner a third less than previous generations.

According to Bank of America's December "OK Zoomer" research report, the COVID-19 pandemic will have a similar impact on Generation Z's professional and financial future as the Great Recession did on Millennials. As a result, while the majority of Generation Z does not have much money to invest in cryptocurrency right now, they may do so in the future, especially if they are as financially prudent and investment-driven as the data suggests. And this is where DeFi's opportunity lies.

Transparent marketing

DeFi firms must participate with the right audiences in particular ways tailored to those demographics to ensure the future and wellness of the digital asset market.

TikTok, like DeFi, can democratize the investing procedure. What was once a closed community restricted to Wall Street bankers and competent managers of hedge funds is now open to the general public.

However, if DeFi takes advantage of the opportunities available through the most popular social media platform, it will need to improve its marketing skills. This entails clear and concise short-form videos geared to the target audience, creating crypto not only accessible but also enjoyable while also being open about the risks associated with investing.

TikTok is a popular platform for short videos. However, they are primarily top-of-the-funnel activities. That isn't always a bad thing. Brands can warm up the Generation Z audience presently to ensure that when they have the funds to invest, they are educated leads ready to be transformed in a few years

This conversion content is required. Over the next few years, cryptocurrency companies must earn the trust of their target audience. Given the recent turbulence and negative press surrounding the bear market, this is no small feat.

DeFi firms must remain transparent, differentiate themselves from traditional finance brands, and determine what types of video content will foster long-term, trusting relationships with today's youth. If crypto companies understand how to speak their language, the future of digital assets could be bright.

What do you think about TikTok slowly adapting DeFi? Will it help the platform to become more prominent in the coming years? Drop your comments by sharing this article on social media.

Oct 3, 2022
Digital Lifestyle

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