When it comes to cryptocurrency trends, something new almost always lies at the end of every blink. For enthusiasts, sometimes, it could be pretty difficult to keep up and so, here’s a comprehensive guide to the latest cryptocurrency, BitClout.
According to BitClout white paper, this is a social media platform that enables users to buy stakes on their favorite influencers, using real money or Bitcoin (BTC) in hopes of reaping gains from their social influence. It is one of the latest innovations in the crypto world poised to take the social media space by storm.
Could this be the next big thing? There’s more to it in the sections, and it gets interesting.
Figuring out BitClout
BitClout (abbreviated as BTCLT) is a recently created social network that empowers users with the ability to invest in influential social media users and speculate profit off their social value appreciation using real money. As the name implies, the project is one of the few social networks, structured like stock market trading, that monetizes social clout and spreads the gain across people who have invested.
The platform is built on a decentralized blockchain similar to Bitcoin — the first and most popular cryptocurrency — and features social media features such as reports, follows, likes, direct messages, etc.
Despite the added features, it still provides users a light and fast experience, thanks to a decentralized open-source structure that reduces the network to the simple task of exchanging coins using simple codes.
The project has been described as a great mix of speculation and content in a single platform with the potential to create innovative ways of monetizing social media time. Its decentralized open-source nature makes the platform welcoming to innovations that can further improve the project in the future. There is already a growing list of prominent investors attracted to the project.
So, is BitClout essentially just a site?
Well, No. It’s more. It’s a social media network that runs on its cryptocurrency. BitClout is the currency that the platform uses for all activities – from profile set-up to purchase of creator coins to stake up on favorite celebrities. The price is designed to double after every million BitClout is sold. The total units in circulation are limited to a range of 10 million to 19 million, making it relatively scarce compared to Bitcoin’s twenty-one million.
For now, Bitcoin is the only way BitClout can be purchased, and this is done right from the user’s profile on the platform after registration.
Okay, and Creator coins?
Well, that’s pretty much the icing, the topping, and the cake of what the project hopes to achieve. Creator coins are digital social currencies bought by BitClout which has its reputation tied to individuals rather than firms or products. It works pretty much the same way endorsements mutually benefit top celebrities and their endorsers. The huge difference with this is —thanks to creator coins —fans, supporters, and pretty much everyone that has contributed to a celebrity’s social influence can now reap real gain (or loss) on their favorite celebrities’ clout.
Remarkably, the network already has over 15,000 already prepared profiles of the topmost Twitter influencers waiting for their real owners to unlock and claim these profiles with a tweet. Some users have already begun to buy into these profiles in advance in hopes of making gains when these influencers register.
The white paper describes the project as ‘the first tool we have as a society to trade clout as an asset.’
What this means is that the value of a user’s coin becomes tied to their social standing to the point where it appreciates when they record new achievements and depreciates when they engage in socially unacceptable behavior.
Now to some of the other unique benefits that with the creator coins initiative.
Reserved reward for starters
BitClout offers another beneficial reward for each starter called ‘founders reward’, which helps keep a certain percentage of the total creator’s coins as a base start-up regardless of the volume of transactions made on the profile. The default threshold is set at 10% and can be adjusted to suit users’ preferences.
Many of these benefits listed have come as afterthoughts not originally designed in the creator coins mechanism but added having considered the possibility of providing a distinctive user experience for enthusiasts.
A ‘bang for your buck’ on trading and investment
There’s a whole world of opportunities with creator coins that could open better ways of trading and investment when people began to buy and sell ups and downs and gain (or lose) from fluctuations in coin transactions.
Get to separate real from the rest
Junk, spam, and a truckload of unread messages are batch headaches experienced by verified influential people in today’s social media. To this, BitClout offers some kind of unique way to filter, rank, and select specific messages from the heaps of spam and have positive conversations with stakeholders that help collectively build the brand and appeal with their investment.
Away with sporadic spamming
Another great benefit is the possibility of reducing unnecessary spamming. A big worry for most celebrity users in already established social media platforms like Facebook and Twitter. It enables users to structure their comment section to accommodate the comments from those confirmed to have invested in them. their, thereby persuading users to simply put their money where their mouth is.
Get paid to repost
Much like an upgrade to twitter’s retweet function, the repost in BitClout works pretty much in a similar way with the possibility of users using avenues such as bids or a portion of their coins to get celebrities to repost their work. It is a structure that puts full control of the profile to every user, especially the ability to profit and the charges and threshold.
There’s also the feature of premium content where only a certain number of people who have subscribed with a certain amount of the cryptocurrencies are entitled to the range of exclusive content offered by the creator.
A creator may decide to take a good look at their fan base which in BitClout, is identified by the number of people who have bought into their personality on the platform, and think to reward them with, say, a live Q&A session, a music ticket or a free lunch. This type of innovation opens the world of social media to a new type of celebrity-fan engagement that can help redistribute scarce coins and reward users who truly want to see their favorites grow and develop.
Back that ‘like’ with some coins
Bitcoin charges for every like given on the platform to redefine the like experience from an expression of ephemeral feelings to a hard-earned money-backed validation. This means that likes become well thought out before being given. What’s more? Users get to also back it up by spending a token of their coins on the creator of the post, thereby reaping from the future benefit of such a creator as it appreciates. The ripple effect is massive as it allows one to become a notable figure guiding other users on the best posts and persons to invest.
So how many creator coins are out there?
Creators coins have been designed to be naturally scarce with every profile being allotted only a paltry 100 -1500 coins, bearing in mind that the value of these coins tend to rise, becoming pretty expensive to mine newer coins, as an increasing number of people begin to trade creator’s coins.
The amount of coins in circulation depends on the buying and selling activity of users. Its creation, scarcity, and value are increased as people exchange their money for BitClout and BitClout for creators’ coins and reduced when the opposite happens—Pretty much the same way Uniswap works.
- Sounds like monetized Twitter?
Well, technically Yes! But there’s a whole lot of difference to it and which is the fact that it runs a decentralized platform and puts the power in the hands of individual users rather than a bureaucratic head. This may also mean that the platform is not open to big corporations, though it may be too early to call.
One thing that cannot be taken away from BitClout is its unique advertising which targets top influencers on Twitter, giving them pre-loaded rewards like creators coins in return for a tweet as a form of publicity for the project. It is one very ingenious move that has created so much hype and could see BitClout grow rapidly. A few big names have already signed up to the platform.
It adopts twitter’s likes, retweets, and direct messages function but also adds financial incentives to them. There’s also the promise of orderliness that comes with the filter features for spam messages.
Before purchase ……Other things to know
One-way Street. The BTCLT is given in exchange for Bitcoin, but BitClout cannot be converted back to bitcoin. It feels like a dead-end as money can be put in the system but cannot take it out of it. This is one of the major grey areas of the project seeing most crypto users fancy a site with free entry and exit that enables them to get out their profits from exchanges in the form of BTC or physical cash.
- Creator-focused: The project is, however, not the first Blockchain social media site. There’s been Hive, Cent, and Steam. It is also not the first to run on specialized tokens (BitClout or BTCLT) as sites like Rally already do, but its creator focus is one of the most unique features that help monetize contents that are known as only ephemeral trends, BitClout’s focus on the creator ensures that the value is sustainable and profitable over time.
- It is Open-source: We may have mentioned earlier that BitClout is Open-source. This means that it is structured to have as many developers as possible join in the project and connect their nodes to introduce improvements. This aspect of the program sparks optimism as it promises future developments that can make the experience a much better one
- Users can go Incognito: BTCLT allows users to remain anonymous. It is not compulsory to set up a profile or link up a Twitter account to the site. Users can hide their identities and remain unknown while crawling through the platform buying and selling creator coins.
- It’s built on blockchain and hype: This doesn’t mean bad. It just means that BitClout leveraged the influence of already popular Twitter users to entice them and their faithful followers to the project. However brilliant it looks, this action has attracted mixed reactions from people with many threatening lawsuits for cloning their profile on a new site without consent and making a speculative profit off their personality.
- It’s Ad-free: There are no promoted content or sponsored posts. Users get to do the advertisement on the platform for one another. They determine which content they want to promote and do so for a negotiated coin payment.
Still not sure of what to do?
Quite a several people feel the same way too, and frankly, it’s too early to know if this is a scam, some Ponzi, or an innocent promising project still in its infant stage. There are also growing speculations and conspiracy theories that some of the world’s wealthiest V.C. billionaires are behind the project. Nothing wrong except that, these unconfirmed speculations believe that a large amount of these BitClout coins have been pre-mined and allotted to await a massive profit surge.
One thing is certain, and it is the fact that all the buzz around this new project is a huge testament to its very effective publicity. Seeing that the cryptocurrency market is unregulated, the task lies on everyone including those social media influencers who have been selected as pioneers to verify and decide.
As with all investments, especially cryptocurrency, the decision to invest lies solely on the owner of the funds. Investors need to figure out for themselves if this is something worth giving a shot seeing that it’s not too late to hop on as an early bird.