The next generation of social network
Market trend is difficult to predict, but if done correctly, it will give crypto investors a huge amount of money. For example, in 2020, the boom in Yield Farming brought the investors in DeFi and Yield Farming projects a huge profit. In 2021, NFTs grow exponentially, making people think that NFTs are bubbles. It’s still not clear though, but one clear thing is that NFT projects in 2021 have grown at an unprecedented rate. And this is no coincidence since technology evolved in momentum and one innovation will lead to another. With the development of NFTs and DeFi, the next trend is likely to be Social Tokens as well as Web 3 Social Networks.
In today’s article, we will talk about Social Tokens, and Bitclout, which is an interesting project about Social Tokens.
Because the social token is in its infancy, its language and definitions are not entirely agreed upon. While the categorization of social tokens will change over time, this report outlines a foundation for how to classify social tokens as an asset class and explain their value proposition. Generally speaking, social tokens can be divided into a few categories:
Personal Tokens - issued and controlled by a primary individual
Community Tokens - issued and controlled by a group, often managed by a decentralized autonomous organization (DAO)
Social Platform Tokens - tokens that represent control over a platform that facilitates social token issuance and exchange
BitClout is a brand-new crypto project aiming to build a social network where all users can participate and invest in cryptocurrencies. BitClout provides the features of a social network platform, including post & images sharing, followers, timeframes and comments.
Basically, BitClout is seen as the Twitter of the crypto community. In addition to its unique features, the decentralized project also allows users to participate in the trading of tokens, the main difference is that each token represents an influential figure, such as Elon Musk, Justin Bieberm, Jake Paul and many other famous names, both inside and outside the crypto community.
BitClout was born with the goal of creating a resonance of speculation and legal values, thereby creating a more diversified, convenient product and allowing users to speculate on celebrities to increase their contribution to the community.
From users’ perspective, BitClout limits the spread of ads which negatively affect user experience and the ability to absorb online information. For speculated celebrities, the platform offloads the reliance on advertising and provides incentives to develop new potentials.
Many investment funds have decided to pour capital into BitClout, notably the following names: Coinbase Ventures, Huobi, Sequoia Capital, Polychain, Andreessen Horowitz, Social Capital, Winklevoss Capital, and Digital Currency Group.
All transactions on BitClout are conducted using a platform-issued cryptocurrency, called BitClout (BTCLT).
The way BitClout works has many similarities with Bitcoin, in other words, users can directly pay for BTCLT with Bitcoin. According to Diamondheads, the founder of BitClout, after every 1 million BTCLT sold, the price of BTCLT will double, and this creates the rarity of BitClout and the opportunity to increase the accumulated value for early adopters.