BitClout Explained: Bet on Your Favorite Influencers or Public Figures (2021)
What is BitClout?
BitClout is a new crypto social network that lets users bet on the popularity of creators and influencers. It is built on its custom blockchain, and everyone has their own coin on BitClout. These coins, which are non-fungible tokens (NFTs), are called “Creator Coins”, and anyone on the platform can buy or sell coins using BitClout currency – the default currency used to buy Creator coins. Now, your next question must be – How do you buy BitClout currency? You will need Bitcoin to buy BitClout currency. And do keep in mind that there is no official way to withdraw or cash out funds right now. However, a trading site named BitSwap is about to go public that promises to let you buy and sell BitClout for Ethereum. Here’s an example that puts things in perspective: Consider two BitClout users – person A and person B (you). Let’s assume Person A is a rising influencer, and you (as an audience) are sure that person A will become successful in the foreseeable future. If that is the case, you can buy person A’s creator coin on BitClout. Then, as the popularity of person A rises, the value of A’s creator coin is expected to increase. You can then sell A’s creator coin that you bought for a cheap price at a considerable profit. Right now, you can buy and sell creator coins of established personalities, including the likes of Tesla and SpaceX CEO Elon Musk, Indian Prime Minister Narendra Modi, media influencer Casey Neistat, popstar Ariana Grande, and others. As more people buy the coin, the price goes up. Take a look at the creator coin supply curve, as highlighted in the whitepaper below:
This way, users can directly support and engage with their favorite creators, thus, eliminating the need for another social platform. Similarly, other users can purchase your coin if they think you are worth it. BitClout’s creators also envision many use-cases, including exclusive meetings for coin holders, prioritized messaging, sponsored posts, premium content, and more.
BitClout Interface and Creators
Coming to the social media aspect, the BitClout interface essentially resembles Twitter. You can like, reclout, quote clout, and comment on posts. Yeah, those are real features, and we are not joking. Each post has a character limit of 280 characters, just like Twitter. Check out the home page below:
BitClout also has a messages section that you can use to send DMs to fellow BitClout users. The platform has no privacy settings, meaning you cannot turn of message requests, so it could likely be a nightmare for influencers and online personalities. Take a quick peek at the messaging UI right here:
While there is no concrete evidence on the creators of BitClout, it is widely speculated that former cryptocurrency startup Basis’ founder Nader Al-Naji is behind the project. There is an official account for the creator on BitClout and it uses the pseudonym ‘diamondhands’.
Who Is on BitClout? And, Can It Make You Money?
In an attempt to avoid impersonation, BitClout has reserved the accounts of the top 15,000 Twitter influencers. Reserved accounts that are yet to be claimed have a clock icon next to their names. However, some users did not like this approach. For instance, Singapore’s Prime Minister Lee Hsien Loong took to Twitter to call out Bitclout for listing his profile without permission. The account has since been taken down. In addition, you should also know that the alleged creator of BitClout has received a cease and desist letter for not seeking permission before creating the reserve account. As of writing this article, of the top 10 most valued accounts, six of them are verified ones, two of them are reserved accounts, and well, we have two other users on the list as well. Unsurprisingly, Elon Musk’s reserve account has the most popularity and valuation. Here are the top 10 accounts along with their coin price, as of May 28, 2021:
Top 10 BitClout Accounts
As for the second question about whether investing in public figures and influencers can make you money or not, well, it depends. If the influencer has a good track record and many people believe in their growth, then their Creator coin value will rise, thus, helping you reap profits. However, if an influencer gets caught in a controversy (which is not uncommon with Elon Musk), the price of their Creator coin could tank with ease. So, we suggest you exercise caution while investing in your favorite internet personality, social media influencer, or public figure.
Create a BitClout Account
If you are interested to sign up on BitClout, go to BitClout’s official website and follow these steps:
Open BitClout in your web browser and click on the blue “Sign Up” button.
The platform will now generate a seed phrase. The seed phrase will act as your password and you will have to enter the seed phrase to log in to your account. So don’t forget to write it down or save it as a note in your password manager. Click on Copy (you will need it in the next step), and then click Next to proceed further.
Paste your seed phrase for verification and click on Next.
You can now verify your phone number. One benefit of verifying your phone number is that you get free 0.002 BitClout to get started. You need starter BitClout or you should purchase BitClout worth ~$57 to complete your profile.
Lastly, you can choose to add your email address to get notified when someone buys your Creator coin on Bitclout.
Setup BitClout Profile
After linking your phone number, you will get starter BitClout and can proceed to update your profile. Click on “Update your profile” to go to the profile setup page.
You can now set your username, update the description, profile picture, and founder reward percentage. Founder reward percentage refers to the cut you receive as a reward when someone purchases your coin. This reward comes from the buyer and not the platform. The default value is 10 percent, but you can change it based on your preference.
Is BitClout Worth the Hype?
According to a recent TechCrunch report, BitCloud has received funding from notable investors, including Sequoia Capital, Andreessen Horowitz, Social Capital, Coinbase Ventures, Winklevoss Capital, and Reddit co-founder Alexis Ohanian. As per a New York Magazine report from early April, more than $225 million worth of coins has been traded within a month of the platform’s launch. Also, the influencer stock market already has a valuation of over $1 billion. While the concept of a crypto social network sounds good in theory, it remains to be seen if it is a passing fad or here to stay. Seeing the interest of many established Silicon Valley investors, BitClout has the potential to become the next big thing. With that said, unless the platform adds the option to natively cash out BitClout to Bitcoin or other cryptocurrencies, the skepticism is bound to prevail. And of course, the most valued account holder Elon Musk’s stance will play a key role in the platform’s success.
BitClout Explained in Simple Terms
So, that’s all you need to know about BitClout before getting started. If you have any other questions regarding BitClout, do not hesitate to ask in the comments section, and we will try to help you out. Since this involves spending your valuable Bitcoin, do not forget to do your own research before spending a lot. Also, if you don’t like the idea of a crypto-backed social network, you could farm your own ‘eco-friendly’ Bitcoin in the form of Chia coin. We have already detailed what is Chia coin and how to farm it in a separate article.
