What is BitClout
BitClout has a one pager
that describes it as:
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
It claims to be a decentralized platform where everyone has a coin that anyone can buy and sell.
Your coin’s price goes up (along with the number of coins in existence) whenever somebody buys your coin.
As such it gives creators a value or market cap where investors can speculate on who they think will have more influence, and therefore value, in the future.
And whenever someone invests in your coin, they have a financial incentive to spread the word, boost your reputation and help make you more famous.
that BitClout controls a wallet with $170M of Bitcoin raised from A-list VC and crypto investors such as Andreessen Horowitz, Sequoia Capital, Coinbase Ventures, the Reddit co-founder and the Winklevoss twins.
BitClout has a founder reward percentage. It’s similar to when a creator sells an NFT and gets a % of future transactions.
By default this is set at 10%, so whenever new coins get created, you get whatever % of those is set.
After random people started buying my coin, I quickly changed mine to 0% (see last section below for why).
One is Subclout
which offers subscription newsletters to your coinholders that own a $x of your coin. Their homepage states, ‘Owning is the new subscribing
This is particularly interesting to me, having built and sold
a top 25 paid Substack publication (business category), and there’s a great recent podcast
by Nathan Latka with the founder of Subclout.
And this is a useful Chrome extension
by Cloutify that shows the market cap of people on Subclout within your Twitter feed as you scroll.
Right now there is no official way to sell your BitClout for another cryptocurrency, so BitSwap
lets you sell for Ethereum, for a 4% fee.
that BitClout’s lead creator (called Diamondhands) says, it emphasizes the value of the creator, not their content. You’re betting on people’s ability to be useful in the future and their reputation. This means you do not have to churn out content to justify your value
A youtube video by Alec Torelli
lists ways in which you can give your coin value, including giving access to your inner circle, investing in your audience’s own coins and offering a product / service to people who hold $X of your token.
For example, BitClout List
, which lists the top creators by market cap, are incentivizing people to buy and hold their coin in order to access their private Telegram room.
As new features are developed on BitClout, it should be possible to only allow stake(coin)holders to comment on your posts (or message you). Currently, those with the highest Clout (coin price) get their comments showing at the top.
A recent feature just shipped is called reclouts, similar to Twitter retweets, which could be a way to decentralise ad revenue to users.
For example, rather than paying social media companies to advertise on their platform, you can buy a coin such as $reclouts
where token holders ‘will have priority for reclouts of their posts going forward’.
Some people believe you should buy your own creator coins, especially at the beginning as they will cost the least.
But BitClout already feels ponzi-esque
(something the website investing community are very familiar with - see The Income Store Scam
) and I’m certainly not going to be investing in my coin to then shill myself to others.
Chou realizes a lot of people have been scammed in cryptocurrency startups and projects. And he doesn’t want the same to happen here. Rally will set up rules so the creators don’t run into any regulatory problems with the coin.
Which is good, as with Subclout it feels as if you’re a one-person securitized ICO.
Indeed, Steph Smith from trends.co states: