Remember NFTs? thought that was hard to grasp? Enter a new social network called BitClout which is going viral after prominent users of Crypto Twitter suddenly discovered their profiles were on the social network even though they didn’t sign up for it.
What is BitClout?
BitClout, is one of the most recent additions to the blockchain boom, “The Crypto Social Network” in its own words, says it allows users to “speculate on people and posts with real money, and it’s built from the ground up as its own custom blockchain.”
The platform says its structure is similar to that of Bitcoin, though it also has elements of a social media feed like posts, follows, and individual user profiles.
This means that the crypto social network allows people to buy and sell tokens representing their identities. “People as fungible assets”
“Like Bitcoin, BitClout is a fully open-source project and there is no company behind it– it’s just coins and code,” the company says.
The startup is already backed by the who’s who of Silicon Valley investors and is gaining major traction.
BitClout is a is a proof-of-work blockchain designed for running social media. It was created by an anonymous group of developers. Backers only hold its token, BTCLT. Nevertheless, a set of prominent investors and crypto businesses have bought in.
How BitClout Works
When a profile is created on the platform it gets its own “creator coin,” with the price of the coins fluctuating based on buying and selling on the site “So if you think a coin is going to become more popular then you will probably make money if you buy it early,” the company explains.
Already, Profiles for the top 15,000 influencers on Twitter — ranging from Kim Kardashian to Elon Musk — have already been loaded onto the platform for trading, a move that has attracted a lot of backlash.
Basically, BitClout is social media on a blockchain that generates social tokens, which represent actual people. Those social tokens’ supplies are controlled by automated market makers, though one governed by a bonding curve that explicitly ratchets up the value as more tokens get minted. You can buy and sell these coins.
Influencers can then claim their profiles, however, they must first tweet about the platform, earning them BitClout’s version of a blue checkmark. Currently, “verified” BitClout creators include Reddit Co-Founder Alexis Ohanian (whose current BitClout worth is approximately $200,000 USD), Pamela Anderson ($581,000 USD), and James Charles ($135,000 USD).
Should I buy BitClout?
BitClout is already facing a lot of criticism with more and more people expressing concern that the platform could be a scam.
Furthermore, reports say BitClout does not allow withdrawals, users must transfer money to the platform, but cannot redeem the creator coins they’ve purchased for cash or other cryptocurrencies. When users attempt to withdraw money, they’re met with an error message reading: “BitClout is under brief maintenance. All funds are safe. Thank you for your support. We’ll be back shortly.”
“BitClout will make a great case study on how badly crypto projects can mess up incentive engineering when they try to monetize social networks.” Jay Graber, a decentralized platform researcher, said in a tweet. “Trust and reputation are key, and if you create a sketchy platform and mess with people’s reputations without their consent it is not going to go well.”
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