Founders say a TikTok ban will not significantly impact creator economy startups

President Joe Biden signed a bill on Wednesday that could potentially ban TikTok, sparking mixed reactions among creators and founders in the creator economy. After years of speculation and false alarms, the threat of a TikTok ban is finally becoming a reality.

For some, like Karat Financial co-founder Eric Wei, the potential ban is met with a sense of resignation rather than panic. Wei believes that the ban could actually benefit startups that provide financial services to creators, as it would prompt creators to diversify their income streams and explore other platforms.

While the ban may not have a significant impact on established creators who have been preparing for this moment, newer creators and those who rely heavily on TikTok for monetization could face challenges. Livestreamers and creators who utilize TikTok Shop may be hit the hardest, as alternative platforms like YouTube Shorts and Instagram Reels do not offer the same features.

Despite the potential disruptions, creators have been adapting to the changing landscape of social media platforms and diversifying their revenue streams. The ban on TikTok could further incentivize creators to explore new platforms and sources of income, ultimately making them less reliant on any single platform.

While the ban on TikTok may create opportunities for other short-form video apps to emerge, the experience with platforms like Triller serves as a cautionary tale. Creators are likely to stick with established platforms like Instagram, YouTube, and Snapchat, where they have built a following and can continue to engage with their audience.

Overall, the impact of a TikTok ban on the creator community remains to be seen, but creators are resilient and adaptable, ready to navigate the changing landscape of social media and continue creating content for their fans.