What is BitClout? How BitClout Works (Invest in Your Favorite Influencers?!)

In this post we’re going to go over what is BitClout, how BitClout works and how you can use it to invest in your favorite influencers! Also this is not financial advice – just information, so please do your own due diligence.

I created my BitClout profile recently and I’ve gotten more and more intrigued with the platform. I did some research and wanted to discuss my findings here!

Also if you already know how BitClout works and want to read my thoughts on the platform and why I invested $500 you can visit this post here.

P.S. Here is the video version of this blog post:

What is BitClout?

BitClout is a type of social network that lets you invest in your favorite influencers with real money and is built as its own custom blockchain. They also have their own native cryptocurrency called BitClout that lets you buy creator coins. From their site they mention: “$BitClout is a cryptocurrency like Bitcoin, only it powers the first decentralized social network.”

How do you get BitClout currency, and then buy your favorite influencer’s coin?

You can buy BitClout currency with Bitcoin – let’s break down the steps here:

1. You need to have purchased Bitcoin. I have Bitcoin on Coinbase (I also have crypto on Binance, Bittrex, and Bitstamp). But to make it simple, Coinbase is a good one to go with because of it’s efficient and easy-to-use user interface. Sign up on Coinbase through my link for $10 free Bitcoin.
2. Once you buy Bitcoin, make a BitClout profile here: http://bitclout.com/ (you can have your own coin as well!)
3. Now, you can buy Bitclout with Bitcoin by sending Bitcoin to your specific address –> visit this URL for the exact steps and address
4. After you’ve transferred Bitcoin over, you can buy BitClout directly on their website.
5. Once you’ve traded for BitClout you can use it to buy your favorite creator’s coins!

 

If you like my content/believe in my potential, feel free to invest in my creator coin here. 🙂 

Feel free to follow or show some love grabbing my coin!

What Their Platform Looks Like

BitClout looks like a mix of Twitter and Robinhood right now. People can post text posts and attach images if they want. There’s no video currently.

Some of those posts get chosen to be on the Global feed (not sure how their algorithm works around this at this point):

Pro tip: The more you engage with the global feed, the more it seems to help you get your content discovered as I’ve been able to gain followers and investors just by participating. It’s been quite the fun, uplifting community so far, with everyone supporting each other and learning more about the app! And it’s great to make new friends on the platform.

When you go on each person’s profile you can either follow or buy their coins to support, and your “Following” feed will be populated with the posts from people you follow.

Their Marketing Strategy

BitClout grabbed 15,000 top influencers on Twitter who hadn’t signed up for BitClout yet.

If these profiles haven’t signed up for BitClout you’ll see a clock icon next to their names. If they HAVE confirmed, you’ll see a check mark next to their name. Only the owner of the Twitter account associated with unverified profiles can claim it, and they do so by tweeting their BitClout public key. People are still investing in those unverified profiles though, as you see here:

I feel this has been controversial as some celebrities have gotten upset at the use of their name as a coin. It’s a pretty ballsy move that the platform put their profiles up without consent, but kind of a genius marketing move as well.

Creator Coins – How do they go up in price?

One of the ways creator coins could be used is to only allow premium content to be shared with investors who have already invested a certain amount of coin into the celebrity. For example, if Jeff Bezos were to do a private AMA only for coin investors, it could make the coin worth even more.

Apparently there are only around 100 to 1,500 coins in existence because as coins are bought, the coin price goes up ridiculously quickly. I’m guessing at around 1,500 coins the coins will start being worth billions.

This is what they mention is the formula:

Price in BitClout = .003 * creator_coins_in_circulation^2

Price in USD = .003 * creator_coins_in_circulation^2 * bitclout_price_in_usd

And here’s a chart of how the price increases per coin (taken from their one-sheet):

I’m guessing that they wanted to increase the price of coins quickly to give a boost to creators and make them motivated to promote their profiles more.

Founder Rewards

If you’ve created your own coin, you can add a founder reward percentage so that whenever people buy, you can get a percentage of the coins. For example, if you set your founder reward percentage to 10%, you would receive 10 coins of it as the founder if someone purchased 100 coins of yours. That way you are rewarded when people invest in you as well.

You can’t withdraw from BitClout into Bitcoin into USD yet!

This is one of the biggest reasons why people are wondering if this is a scam or not. Right now it looks like you can trade within BitClout, that when prices go up and down with a creator coin, you can sell off your creator coin for BitClout. However, it sounds like it doesn’t currently work when trying to trade BitClout back into Bitcoin.

My Opinion

I love the concept of BitClout! I’ve encountered so many scenarios in which I believe in friends or believe in influencers who haven’t realized their potential yet. That’s why I would love to use the platform to invest in my favorite people.

At the same time, I would not spend my life savings on this platform as it can be a high risk play. I’ve only transferred $500 worth of Bitcoin as a test over to BitClout and am just having fun investing in influencers. Many people are wondering if it’s a scam or not so I created a post with my opinions here.

Who knows if they will ever open withdrawals – so you have to stay safe knowing this information!

My thought is that they might be closing off withdrawals until they hit a critical mass. Then once they open the flood gates there may be a lot more press around the website, and tons of investors may be pouring in.

Make sure you all stay safe with investing in BitClout and be on the lookout for their updates and for information on whether or not they’ll be opening up withdrawals.

Disclaimer: Not financial advice! This is for informational purposes only. Please do your due diligence.

Summary

I hope you guys enjoyed this breakdown of BitClout and let me know in the comments if you have any questions around it! And again, if you believe in my potential, feel free to follow or show some love grabbing my coin!