BitClout
An influencer stock market called BitClout is allowing investors to buy crypto coins tied to the reputation of icons like Elon Musk, Chamath Palihapitiya, Justin Bieber, and more.
The goal of the platform is to create a token-based, decentralized social media marketplace where traders can engage in normal Twitter-like discussions while also profiting off the reputation and influence of the rich and famous.
Just like non-fungible tokens made a digital art marketplace accessible to all, BitClout hopes to make a marketplace out of people's reputations.
Transactions on the site are executed using BitClout's own crypto coin, which traders swap bitcoin to hold.
Elon Musk's creator coin is currently going for over $70,000 on the BitClout site, more than the base price of a brand new Tesla Model S.
Chamath Palihapitiya's coin is also selling for top dollar at over $33,000, while Justin Bieber's coin is relatively cheaper at just over $19,500.
There are also creator coins for thousands of public figures and stars like Snoop Dogg, Ariana Grande, Joe Rogan, and even the digital artist Beeple on the platform.
Investors in BitClout include big names like Sequoia Capital, Coinbase Ventures, Andreessen Horowitz, and Chamath Palihapitiya's Social Capital, according to reports from TechCrunch, citing the startup's anonymous founder who calls himself "Diamondhands."
The only public name tied to BitClout is that of Princeton alum Nader Al-Naji, who raised $133 million for his first start-up, Basis, which went belly up due to tightening US securities regulations.
Now it seems Al-Naji is again facing legal hurdles at BitClout after the firm pre-populated its BitClout network with 15,000 accounts using information from popular public Twitter profiles before going live last month.
Brandon Curtis, the product lead for the decentralized token exchange Radar Relay, filed a lawsuit against BitClout for using his likeness without consent on March 23 saying in a Tweet that BitClout was "using bitcoin's aesthetic to raise VC funding to carry out unethical and blatantly illegal schemes."
BitClout isn't just facing a lawsuit. Some have questioned the security of the platform because BitClout's bitcoin holdings, which typically are secured on the blockchain, are held privately in servers, NY Mag reported.
BitClout responded to recent security rumors on Twitter saying, "a rumor has been going around that BitClout is insecure. Just wanted to say this is untrue full-stop. The dev community completed multiple audits specifically around seed phrase handling prior to launch, and the nodes have been running since last year without issue."
Despite the legal and security concerns, BitClout has continued to gain traction with consumers. The platform is filled with users touting their personal "market caps" and the revolutionary nature of BitClout.
The platform even attracted Jordan Belfort, the famed "Wolf of Wall Street" portrayed in the 2013 film by Leonardo Dicaprio.
Belfort owns almost a quarter of his own creator coin and spends his time on the platform writing posts that pump his holdings, like this one from Tuesday where Belfort says "hopping in on my coin is like Jumping on Floyd Mayweather on fight night in Vegas."
Only time will tell if BitClout is just another vehicle for speculation or if the company can surmount legal and security challenges and become what VC investors like Chamath Palihapitiya hope is the next crypto darling.
See Also:
- The Archegos meltdown will result in a $10 billion loss for global banks, JPMorgan says
- 15% of retail investors got their start during the pandemic, Schwab says
- Hedge fund manager and TikTok sensation Alpesh Patel breaks down the 3 need-to-know processes for retail investors — and why he has 'FOMO' trades on 2 cryptos
