Kevin O’Leary Wants To Buy TikTok and Implement Cryptocurrency Features

Last updated:

March 28, 2024 12:26 EDT
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Mainstream cryptocurrency adoption is well underway, with recent findings from a report showing that global cryptocurrency ownership has increased by 34% in the last year.

according to the report432 million people owned crypto in January 2023, number rises 580 million by the end of last year,

Notably, digital assets could soon become even more mainstream if Canadian businessmen and “Shark Tank” hosts are on board. Kevin O'Leary bought TikTok,

Kevin O'Leary Discusses Crypto for TikTok

O'Leary recently Said on the Web3 Deep Dive Podcast If it buys the popular social media platform it will implement digital asset features based on compliance.

“I think there is potential to use digital payment systems on platforms like TikTok. There's no question about it,” O'Leary said.

O’Leary elaborated that since TikTok is a “global phenomenon,” it will provide many users around the world with greater ease of access to cryptocurrencies to make digital payment transfers between countries.

“It has to be compliant, transparent and clearly auditable so that users know who sent and received transactions. I will provide that. I think that's the potential of such a big platform,” O'Leary commented.

Is TikTok Ready for Cryptocurrency?

Although Potential sale of TikTok still underwayIndustry experts believe that implementing cryptocurrency into the platform could be beneficial for growing the app.

Alexander Mamasidkov, founder and CEO of digital payment solutions platform CrossFi, told CryptoNews that the inclusion of crypto payments in TikTok could also play a positive role in spreading crypto content.

“A main feature of TikTok is the phenomenon of self-reproduction, which is the willingness of users to generate mass content on their own,” Mamasidkov said. “Supporting cryptocurrencies will allow users to create crypto-focused content at scale.”

Mamasidikov said mainstream adoption of cryptocurrencies would likely increase TikTok's Generation Z user base,

“TikTok users are generally open to innovation, appreciate quick solutions to problems and can easily incorporate new technologies into everyday life,” he said.

Shira Lazar, founder and CEO of the news outlet what's trendingtold CryptoNews that including cryptocurrencies as gifts or as a tipping mechanism during TikTok live streams could be a smart move for the platform.

“This seems pretty obvious as cryptocurrencies become more mainstream,” Lazar said.

Lazar – who has over 620,000 followers on TikTok – further said that if TikTok users can earn fiat, there should be the same option. Made available for cryptocurrency payments,

“Why Shouldn’t TikTok Consider Crypto as an Option? Even internationally, it appears more people are holding crypto rather than cash,” she said.

As Lazar points out, crypto adoption is very evident in countries like these El Salvador, where Bitcoin is accepted as legal tender starting in 2021, other countries like Nigeria and Turkey also among the biggest adopters of cryptocurrencies this year,

Challenges of Implementing Cryptocurrency on TikTok

Although cryptocurrency payments may seem a logical next step for an app like TikTok, challenges are likely to arise.

Tim Delhaus, CEO of smart-wallet provider Grindry, told CryptoNews that while incorporating crypto payments into social media platforms represents a huge opportunity, compliance and regulation could be problematic.

Speaking from experience, Delhas shared that Grindry recently announced an integration with the messaging platform Telegram will allow users to leverage cryptocurrencies Inside the app.

“Grindery enables Telegram users to create a wallet without the need for a passphrase or private key. Users can send any token to other Telegram users without knowing their wallet address, and swap tokens quickly and without gas fees,” said Delhaise.

Grindry is still in its beta phase, yet Delhase notes that the platform has already attracted more than 700,000 sign-ups. While notable, Delhase pointed out that meeting the regulations is no easy task.

“Grindery’s focus on Telegram stems from shared values ​​in decentralization and privacy,” he said. “Overcoming these challenges requires innovative approaches to compliance, leveraging the transparency and security features of blockchain, and working closely with regulatory bodies to ensure that all operations meet legal standards.”

It is important to point out, especially given that The United States takes a serious stance towards cryptocurrencies,

Apart from regulations, Mamasidikov believes that the biggest challenge regarding cryptocurrency payments on TikTok will be technology related.

“When implementing the technology, it will be necessary to provide the possibility of paid messages,” he said. “This will allow users to transfer funds to each other through the messenger built into the social network.”

Lazar said TikTok could partner Crypto-friendly platforms like PayPal, Venmo, or CashApp To ensure adequate payment options.

Cryptocurrencies could be the future of social media

Despite the challenges, Delhaus said crypto payments have the potential to turn social media platforms into “super apps.”

“This development is important for content creators, offering them new revenue streams, greater control over their earnings and direct financial interaction with their audiences, free from platform-specific constraints,” he said.

Delhes pointed out that this has already been demonstrated by WeChat. Messaging platform adds digital yuan payments to its platform Last year.

Yet for this model to be successful, Delhase stressed the need for separation between blockchain payments and core business functions. If this is not ensured, he pointed out that cryptocurrencies within TikTok could fail similar to Facebook's Libra project, or Telegram's 2018 token launch.

Mamasidikov further commented that he believes alternative payment solutions will be implemented in many social networks in the future. He said it would also enable financial tools for citizens of developing countries who may not have access to traditional banking methods.

He said, “I can say with confidence that the era when financial resources were not available to 60% of the world's population will end very soon.” “Any person on the planet, regardless of their place of residence, origin, wealth, will be able to access unbanked banking products and money transfers as social media platforms mature.”

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