2021-04-13 10:22:25

Tired of buying into equities, bonds and cryptocurrency? Now you can bet on influencers via BitClout


Representational picture&nbsp | &nbspPhoto Credit:&nbspPTI

We live in interesting times. Today, the stock market game has expanded to blockchain technology and very recently, memes have also found their way into the world of investing. Keeping up with the ever-evolving trend, a new platform has come to the public forum last month – which turns people into currency. BitClout.

“BitClout is not a company. It’s an open-source blockchain like Bitcoin. You can own a piece by buying the $BitClout coin,” states the website. The platform can be best described as Twitter-meets-bitcoin, where famous people and influencers have creator coins assigned to their name.  

How does it work?

To operate the platform, one needs to first stock up on BitClout. As of today, 1 $BitClout equals $165.62 USD per coin. “You can buy it anonymously with Bitcoin in under a minute,” claims the website. After a user has bought some BitClout, it can be used to buy and sell creator coins, send messages to people and submit posts of your own. 

What are creator coins?

On Bitclout, all creators are assigned a coin. Elon Musk has a coin, you can buy for $65,870. Coins reserved in the name of singer Ariana Grande costs $25,026, while YouTubers such as MrBeast and Logan Paul cost $22,609 and $20,227, respectively. The Kardashians, too, have creator coins assigned to them and so does venture capitalist Chamath Palihapitiya.  

A white paper about the platform explains, “Buying creates coins while pushing the price up and locking money into the profile, while selling destroys coins while pushing the price down and unlocking money from the profile.”

However, most of these names, except for Chamath Palihapitiya, have not authorized the creation of their profiles nor have claimed the coins BitClout set aside for them. On March 19, Canadian actor William Shatner, with a coin price of $585.99, claimed that the platform was a scam and he had not authorized his name or likeness to be used on it.  

The next big thing or a scam?

While some big names such as American DJ Steve Aoki and German record producer Boys Noize have made their coins official on Bitclout, the majority of the accounts on the platform are still not verified.  

One of the reasons why investors see no authenticity in the site is because, once you put your bitcoin to really trade on the platform, there’s no way to trade it back. Basically, users can put their money in, but can’t get it out.  

In mid-March, this mysterious blockchain social media platform was taken down. But, it came back online on March 17. Its founder, an anonymous person/s that goes by the name Diamondhands, claims Bitclout to be a mix of speculation and content together, a new business model that’s not ad-driven anymore.  

While the experiment might be noble and disruptive, this social crypto-exchange is riddled with doubts, unverified accounts and one-way transactions. It claims to be blockchain’s “iPhone moment”, but are you ready to bet on it? Let us know in the comments below.

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