The exchange of virtual currency on TikTok, specifically the conversion of coins, is a function that allows users to convert their purchased coins into Diamonds, which can then be used to support creators through gifting. This process is internal to the platform and represents a key aspect of TikTok’s monetization system. For example, a user may purchase a specific number of coins and then use those coins to send virtual gifts during a live stream; the value of these gifts translates to Diamonds for the recipient.
This internal currency system is crucial for fostering a creator economy within TikTok. It allows viewers to directly support their favorite content creators, incentivizing the production of engaging content. The history of virtual gifting and in-app currency systems predates TikTok but its integration into TikTok’s ecosystem has significantly amplified its impact and provided a new avenue for monetization and audience interaction.