This was posted on videosift, I read in the comments that this is a defense behaviour, as there are poison glands atop the head. Toad is fearful, not cuddling!
Yeah, I've seen another video where someone is doing this to a toad and comments were saying it was a defensive thing as well. It's still cute though :D
I've actually done this. I doubt the toad is fearful. Toads can jump like crazy to get out of danger. I remember that when I scratched the toad, then stopped, he'd stay right where he was.
If you rub their bellies they will go to sleep. I have done it numerous times and it amazes the kids. Put them back on their feet and they wake up after a few minutes - just don't inadvertently tread on them!
A friend of mine had a frog that would hop out of his aquarium (he had free rein over the room) and climb up her specifically to get his head rubbed. It was his favorite thing in the world.
I live in FL. and I also have done this...its very cute but I dont know if they enjoy it or it is glands or if they are fearful.But i do know they are very capable of running away and they dont!!
http://allaboutfrogs.org/weird/general/frogtoad.html