Comparitech Research: Facebook’s Libra Coin Might Be Reddit’s Favorite Cryptocurrency
If you are familiar with Reddit, you must know that the common sentiment is that Facebook as a product is terrible and Facebook the corporation is just evil. So, it would have been safe to assume that their pet stablecoin Libra would not be well received by the community. However, according to a study published by Comparitech, this is not the case. In fact, their study reveals that the case is quite contrary with over 97.7% of the people in favor of it.
Surprisingly, the data shows that most of the top cryptos are welcome in the Reddit’s crypto community. Even Tether, which has the worst reviews amongst the 11 top cryptos surveyed, has 66.4% positive ratings.
Tether 2017: We promise all Tethers are 100% backed by fiat
Tether 2018: We promise all Tethers are 100% backed by assets
Tether 2019: We promise all Tethers are 74% backed by ______.
Tether 2020: Tethers exist, WE PROMISE NOTHING
— Giancarlo Van der Velde Potter III (LLC) (@CasPiancey) May 6, 2019
The authors of the report point out:
“Previous studies have revealed that people are much more likely to write a negative review than a positive one, in spite of the many positive experiences an establishment may yield. This trend, however, was completely reversed when it came to reviewing cryptocurrencies. Internet talk was overwhelmingly positive in the conversations we examined between January of 2017 and July of 2019.”
Studying trends on social media can actually be very helpful. Hedge funds and asset managers seeking an edge are training computers to scrape social media sites for triggers that could move the price of digital currencies. Many investors already use computer models to identify, and trade, price differences across hundreds of cryptocurrency trading exchanges.
Reddit's main forum, or subreddit, for bitcoin alone has 1.1 million members. In an attempt to extract meaning from this mayhem, algorithms use so-called natural language processing, identifying keywords and emotions that indicate changes in how social media users view certain digital currencies.
When we analyze data from social media and news coming out of the mainstream media, we see a stark contrast. Mainstream media has overwhelmingly negative coverage while on social media cryptos are generally viewed as favorable.