Describe BitClout
The most recent craze to hit the cryptocurrency markets is called BitClout, and it has completely taken over the community. But what exactly is it about?
Every now and then, a new project makes the rounds and sets the cryptocurrency community on fire.
Currently, it seems like Bitclout is the hottest social network around since it allows users to speculate with actual money on other users and postings.
Let’s take a closer look at Bitclout to see what it is and why it is so well-liked at the moment.
The Bitclout Network: What is it?
A new decentralized protocol called Bitclout creates a social network that allows users to make real-money predictions about other users and postings.
The project’s official whitepaper claims that it has a comparable architecture to Bitcoin and is set up on its own proprietary blockchain. It can only handle information like posts, followers on profiles, and other hypothetical features.
The whitepaper then goes on to discuss everything about its native cryptocurrency, BitClout, and the activities users can do with it without revealing any further information about the technology behind the product itself.
The article does, however, note that “much like Bitcoin, anybody on the internet may host a BitClout “node” that delivers the BitClout content, and every node on the network maintains a complete copy of all the data.”
The cryptocurrency BitClout
In exchange for Bitcoin, BitClout may be purchased and used to “perform all kinds of activities on the platform, including buying a new kind of commodity called creator coins.”
It’s interesting to note that BitClout’s price doubles for every million units sold; this is designed to make the currency rare. In the long run, it also generates 10 to 19 million BitClout.
The point at which everything comes together is when consumers use their BitClout coins to purchase creator coins, as was already indicated.
Designer Coins
Every profile on the network receives a unique creator coin, which is available for purchase and sale by anybody. Each coin’s value organically increases with demand, and vice versa. The major goal is to make it possible for users to invest in accounts they predict will get more followers and influence—or, as they put it, “gather more clout.”
The top 15,000 Twitter influencers’ profiles were pre-loaded by the creators, and users may immediately purchase and trade their coins.
We can see in the graphic above that while the profiles of Chamath Palihapitiya and Justin Sun have already been claimed, those of Elon Musk, Katy Perry, CZ Binance, and other celebrities have yet to be claimed.
Additionally, we can observe that the cost of these particular creator coins has already soared. For instance, the price of Musk’s creator currency is currently close to $68,000.
The Supply Of Creator Coin
Creator coins are intended to be rare, with “usually fewer than 100 to 1,500 coins in existence for any profile,” according to the whitepaper.
A storm of Twitter ads
The way BitClout has organized their marketing initiatives is among the most creative aspects of the company. In essence, everyone who wants to claim their profile must tweet about it. Due of this, prominent figures from the cryptocurrency business were there yesterday night.
They “get full access to the account and a portion of the creator coins linked with their profile” by doing this. Naturally, the only person who may claim a reserved profile is the owner of the Twitter account linked to it.
As a “fonder incentive,” each profile enables the inventor to retain a portion of the coins that are produced. This means that, for example, if someone sets their reward percentage to 10% and someone buys 100 BitClout of that currency, 10 BitClout would be used to make the transaction, and this sum would go to the creator’s wallet.
Importantly, only “net purchase” of their coin qualify for the founder incentive. Therefore, the inventor would only have 10 BitClout of their own coin at the end if someone were to purchase 100 BitClout of the coin, sell it, and then buy it again. By setting their founder award to 10% and aligning with growing the net buys of their coin eternally, the inventor may therefore control 10% of the total supply. Reads the whitepaper, etc.
By tweeting about the platform to claim their profiles, owners of large Twitter accounts may launch a very effective marketing campaign. It starts a domino effect, which is why there is so much excitement about the project right now.
BitClout: Is it a Scam?
The BitClout network does not officially endorse BitClout Pulse as a service. However, it draws information from the open BitClout blockchain and provides a dashboard so users can keep tabs on the effectiveness of different profiles.
This page shows the BitClout block explorer.
The initiative is still in its infancy; thus, it is currently hard to assess whether it is a fraud or not. However, there are several warning signs about it that many well-known cryptocurrency enthusiasts have brought out.
First off, a lot of people think that the project is supported by VCs who pre-mined BitClout before it went on sale and are now sitting on enormous profits. Many claim that creator coins follow the same rules.
VC’s and their pals have been buying this up for over a week behind a locked website, and they’re now enabling you to buy it from them for over 100x opening price, C0in Alchemist said in a comment on a thorough thread outlining the ins and outs of the platform. Not overstating, look at the chain.
Furthermore, he explained, “They and their pals have also been pre-mining all of the creator coins they believe are most valuable, so you may enjoy paying a much higher price for those as well.”
On top of that, on March 14th, CryptoPotato revealed in a Billboard article that BitClout had been promoting celebrity NFTs without their permission.
In any event, it is ultimately up to the user to decide if BitClout is a worthwhile investment. It is crucially important to conduct the required study. The endeavor is rather dangerous due to several warning signs, though.
None of the aforementioned constitutes financial guidance. Cryptocurrency investing is quite risky, and you run the risk of losing your money. Refer to the bottom for a comprehensive disclaimer.
