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April 09, 2021, 01:57:15 PM |
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Prominent users of Crypto Twitter have suddenly discovered they have another profile on a new social network called BitClout, except over there some people are buying and selling tokens representing their identities. It does not matter whether the people behind those profiles have ever touched the social network.
“The core insight behind BitClout is that if you can mix speculation and content together, you can not only get a 10x product that creates innovative ways for creators to monetize, but you also get a new business model that’s not ad-driven anymore,” BitClout’s lead creator, who goes by Diamondhands, told CoinDesk in a phone call.
BitClout is not a company. It 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.
BitClout is social media on a blockchain (like Hive, Steem or Cent). It also generates social tokens (like Roll or Rally), which represent actual people. Those social tokens’ supplies are controlled by automated market makers (like Uniswap or Curve), though one governed by a bonding curve that explicitly ratchets up the value as more tokens get minted.
In order to do anything on the site, users need to get their hands on BTCLT. To really trade, that means putting in BTC to get BTCLT, but there’s no way to trade it back. Users can send BTC to BitClout for BTCLT but they can’t trade it back to BTC on the site.
Is this the Future or is it another scam?
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