BitClout Review – What is It, and Why Is There So Much Hype? Is It A Scam?
BitClout is a new crypto social network making headlines across the community.
Based on a decentralized protocol, BitClout uses blockchain and cryptocurrency to fuel social activity. BitClout users can speculate on people and posts using real money.
You can buy NFTs for Elon Musk or Kim Kardashian, for example, trading them with other BitClout users. After disappearing online earlier in March, BitClout is back online.
What is BitClout? How does BitClout work? Can you really make money by buying and selling NFTs of celebrities? Find out everything you need to know about the mysterious new social platform today.
What is BitClout?
BitClout is a blockchain-based platform where you can trade coins representing celebrities and other public figures.
Users buy and sell NFTs for public figures using the platform’s native cryptocurrency: BitClout.
Let’s say you’re interested in a rising social media star. Someone creates an NFT for that person on BitClout, and you buy the token. As that person’s ‘clout’ rises, the value of the token increases.
Other celebrities already have high-value BitClout NFTs. Elon Musk’s NFT recently traded at $68,000, for example, while Justin Bieber and Kim Kardashian were priced around $14,500.
At the time of writing, you can find minor and major celebrities on BitClout. Anyone with some type of presence could have an NFT on BitClout. In addition to Kanye West and Drake, you’ll find public personalities like Donald Trump and Joe Rogan, among others.
If you have a proven ability to spot someone’s clout potential before they take off, then you could make a fortune on BitClout.
How Does BitClout Work?
You can learn full details about BitClout at the project’s whitepaper here: BitcloutWhitepaper.com
Here’s how the whitepaper introduces the project:
“BitClout is a new type of social network that lets you speculate on people and posts with real money, and it’s built from the ground up as its own custom blockchain.”
On the back-end, BitClout claims to have a similar platform to bitcoin but with advanced features for social media posts, profiles, follows, and more. It’s also designed to support higher transaction throughput.
BitClout is completely open-source. There’s no company behind BitClout. As the whitepaper explains, BitClout is “just coins and code.”
Key points to get from the BitClout whitepaper include:
The BitClout blockchain has its own native cryptocurrency called BitClout
You can use BitClout tokens to do all kinds of things on the platform
Namely, you can buy a type of asset called “creator coins” using BitClout tokens; you can find creator coins for public figures like Kim Kardashian and Donald Trump
Anyone can buy BitClout with bitcoin in minutes using the platform’s built-in decentralized exchange
The price of BitClout doubles for every million BitClout sold
BitClout’s emission system is designed to be “naturally scarce” because it leads to “10 to 19 million BitClout minted in the long run,” which is less than bitcoin’s max supply of 21 million
The BitClout whitepaper is just 7 pages long. It provides basic details of the project. You can check BitClout’s code (it’s open-source) for greater detail.
How Do BitClout Creator Coins Work?
Every profile on the BitClout platform gets its own coin. Anyone can buy and sell this coin – called a creator coin.
Want to make your own creator coin? Curious about how much you’re worth according to social media? You can create a coin for yourself – or for other people.
You can even set your own percentage, choosing to create a number of coins for yourself. As long as you can verify ownership, you can earn tokens.
The price of each coin goes up when people buy, then goes down when people sell.
You buy and sell creator coins directly from each profile. When you buy coins, the BitClout blockchain mints new coins. When you sell coins, the BitClout blockchain destroys those coins.
If you think a creator coin will become more popular (say, if a musician releases a number one hit or a celebrity dies in a tragic accident), then the value of that coin may rise.
How to Buy BitClout Creator Coins
You can buy someone’s creator coin simply by navigating to their profile and clicking ‘Buy.’
You can find someone’s profile either by searching for it or by visiting the creator coin leaderboard. If you’re looking for a specific person, you can type that name into the BitClout platform. If you want to see the hottest or most expensive creator coins, then you can check the leaderboard.
BitClout launched with 15,000 pre-loaded profiles from Twitter. That’s why the hottest tokens feature handles like kimkardashian, elonmusk, Aplusk, iamcardib, and barackobama, among other most-followed celebrities on Twitter.
However, the 15,000 pre-loaded profiles are not officially on the platform. They’re “reserved” because the owner of the profile has not yet joined the platform.
For example, Barack Obama has not joined BitClout, which is why there’s a clock next to his name.
The owner of a reserved profile can claim their profile by tweeting their BitClout public key. When Kim Kardashian tweets the BitClout public key, for example, then it links her Twitter account to the BitClout creator coin.
Only the owner of the Twitter account associated with a reserved profile can claim it.
What Do Creator Coins Do?
Why would you buy a creator coin? What do creator coins do? Like other cryptocurrencies, they’re just blockchain-based tokens you hold in your wallet.
Some people buy creator coins as an investment. Others buy it to support their favorite celebrity.
Some use creator coins to diversify their portfolio. Creator coins aren’t tied to the value of oil, gold, or the S&P 500: they’re tied to the social clout of an individual.
Here’s how the BitClout whitepaper explains the value of creator coins:
“Creator coins are a new type of asset class that is tied to the reputation of an individual, rather than to a company or commodity. They are truly the first tool we have as a society to trade “social clout” as an asset.”
The goal of BitClout is to create a token that reflects someone’s “clout” to society. If Elon Musk builds a colony on Mars, for example, then his clout will increase – and the price of his coin should go up.
At the same time, if Elon Musk gets arrested for insider trading, or if he accidentally uses a racial slur during a press conference, then his clout might drop.
An experienced BitClout trader might buy someone “on the dip.” If you believe a celebrity is down but not out, for example, then you might buy their coin today, then watch that coin grow over time.
Here’s how BitClout’s whitepaper explains it:
“…if Elon Musk succeeds in landing the first person on Mars, his coin price should theoretically go up. And if, in contrast, he makes a racial slur during a press conference, his coin price should theoretically go down. Thus, people who believe in someone’s potential can buy their coin and succeed with them financially when that person realizes their potential. And traders can make money buying and selling the ups and downs.”
The primary purpose of creator coins is to create a token-based on someone’s social clout. However, as the BitClout whitepaper explains, there are plenty of other uses for BitClout and its creator coins.
Other Uses for Creator Coins
Other uses for creator coins, according to the BitClout whitepaper, include:
Stakeholder Meetings: A creator could make it so that only people who own a certain number of their coins can participate in the comment section of their posts. Someone might restrict commenting to only people with 10 coins, for example. It reduces spam and could improve the quality of conversation. The BitClout whitepaper mentions the idea of Elon Musk answering an AMA based on the number of coins each person holds.
Prioritize Messages: Celebrities get endless spam in their inbox on social media. With BitClout, celebrities can restrict messaging only to people who own a certain amount of each coin. Instead of receiving messages from anyone, celebrities could require people to effectively “pay” to reach their inbox. They need to buy a certain number of coins.
Sponsored Posts: Creators could use BitClout to create an inbox. Anyone can bid to have them repost or retweet a particular post. You might pay Kim Kardashian via BitClout to share a link to your fashion website, for example.
Premium Content: Celebrities could release premium content for their biggest fans. They could create a monthly subscription service via BitClout. Or, they could only release top content to the top five biggest coin holders.
Distributions and Engagement: BitClout allows creators to use their coins to distribute scarce resources of the largest coins. If Kim Kardashian wanted to give away a free dinner to her biggest fan, for example, then she could launch a contest where the largest coin holder gets a dinner with her. Or, celebrities could send 1,000 signed posters to their biggest 1,000 coin holders. Because coin totals are verified on the blockchain, it’s easy to see which person owns which coins.
Money Likes: BitClout allows creators to re-imagine ‘likes.’ A like could be equivalent to purchasing a creator’s coin. It costs money to like something, and you get the creator’s coin when you do so. It’s a way of supporting a creator. It’s also a way of showing the creator that they released something you liked – like a high-quality piece of content.
Many More Uses: The BitClout whitepaper explains that the creators don’t fully understand the implications of the platform. They’ve simply built it and made it available open-source. As the whitepaper explains, “we can’t know for sure” what people will do with BitClout and its creator coins, but the internet will discover creative uses.
All of these activities could increase the value of a celebrity’s coin. If Elon Musk is active on BitClout, for example, then people will want to buy his coin because they can use it for actionable purposes: like sliding into Elon’s DMs.
The BitClout Creator Coin Supply Curve
Creator coins are naturally scarce. There are fewer than 100 to 1,500 coins attached to each profile.
Why are they naturally scarce? As more people buy a profile’s creator coin, the price of that coin increases automatically at a faster and faster rate.
Once a celebrity reaches a certain point, it would take billions of dollars to mint just one more coin, effectively ensuring the scarcity of that coin.
The BitClout whitepaper discloses the specific formula for determining the price of a creator coin.
When you create a BitClout profile, there are no coins in existence for that profile. The price of the coins is zero. If you want to buy coins from that profile, the BitClout platform will mint coins out of thin air, then sell them to you based on the BitClout formula. As more coins are purchased, the price rises.
Similarly, if you want to sell coins, the profile will buy them from you, dropping the price lower. When you sell coins on BitClout, the BitClout platform destroys coins, pushing the price down and unlocking money from the profile. The whitepaper describes it as an “automated market maker,” similar to the mechanisms powering Uniswap and Bancor’s protocols.
BitClout Founder Rewards
Every profile allows the creator to keep a certain percentage of coins. This is BitClout’s founder reward.
You can choose the founder reward percentage.
If you set it to 10%, for example, and then someone buys 100 BitClout tokens, then 10 would be used to buy the creator’s coin, and those coins go into the creator’s wallet instead of the purchaser’s wallet. The creator would own 10% of the total supply by setting their founder reward to 10%.
BitClout is Decentralized
BitClout, like most blockchain platforms, emphasizes the value of its decentralization. There’s no central BitClout server, nor is there a central authority controlling BitClout.
Instead, like bitcoin, BitClout is run by a decentralized network of nodes anywhere in the world. Anyone can run their own BitClout node. This node serves BitClout content, and every node on the network stores a full copy of all BitClout network data. If one node disappears, then the network remains operational.
When you visit BitClout.com, you’re using the BitClout’s creators node. However, there are already “dozens” of BitClout nodes, according to the BitClout whitepaper. As BitClout explodes, more nodes will emerge.
Here’s how the BitClout whitepaper explains the importance of decentralization:
“In the same way that you can move Bitcoin from one wallet to another, BitClout makes it so that you can move your “clout” in the form of your followers, posts, creator coin balances, etc anywhere as well. Thus, in some sense, BitClout is decentralizing social media in much the same way as Bitcoin is decentralizing the financial system.”
You can view the BitClout block explorer here: https://explorer.bitclout.com/
Is BitClout a Scam?
Some believe BitClout is a scam.
Like all crypto projects, BitClout’s creators are shrouded in mystery. Plus, BitClout has gone online and offline repeatedly since its launch, making users skeptical about the longevity of the platform.
Social media users have pointed out several red flags suggesting BitClout is a scam.
C0in Alchemist posted a detailed reply to a BitClout thread where he explained venture capital firms had been quietly buying up BitClout tokens in private rounds for weeks. Once the project goes public, they earn huge returns.
Here’s how C0in Alchemist explained the system:
“… VC’s and their friends have been buying this up for over a week behind a locked website, and they’re now allowing you to buy it from them for over 100x opening price. Not exaggerating, check the chain.”
C0in Alchemist added that the creators of BitClout “and their friends” have been “pre-mining all of the creator coins they think are the most valuable.” That’s why some coins on the platform are already so valuable.
CryptoPotato, meanwhile, has been critical of the project. He explained that BitClout has been selling NFTs for celebrities without their consent.
As WaymanCap explained on Twitter, BitClout also has a problem with fake profiles. BitClout’s team forgot to reserve a bunch of the 15,000 pre-loaded user names, so people have been taking those usernames and pretending to be them.
Altcoin Psycho believes BitClout is a scam, calling it the “scummiest project I’ve seen in ages,” even going so far as to call it “Bitconnect 2.0.” He claims to have spotted the same shady presale activity connected to other infamous crypto scams.
Ultimately, the jury is still out on whether or not BitClout is a scam. Like all new crypto projects, it could be a huge Ponzi scheme – or it could be the start of the world’s largest decentralized social network.
What is BitClout Pulse?
BitClout Pulse is a third-party website found online at BitCloutPulse.com. The website does not appear to be affiliated with the BitClout project. However, the website has its own creator coin you can buy for secret features.
At BitCloutPulse.com, you can discover the value of profiles on BitClout, including the market cap for Elon Musk, Katy Perry, and other celebrities, the circulating supply of each creator’s coin, and the change in the last hour.
In other words, BitCloutPulse is like CoinMarketCap for BitClout.
BitClout is a mysterious new social media network taking the cryptosphere by storm.
By some counts, BitClout has already raised over 2,700 BTC, or about $155 million. You can verify this amount at BitClout’s address, which was identified by Larry Cermak (@lawmaster).
BitClout could be the decentralized social media revolution we’ve been waiting for, empowering creators with a secure platform by giving them a new way to communicate with fans.
Or, it could be BitConnect 2.0.
To learn more about BitClout and how it works, visit BitClout.com or BitCloutPulse.com.