The growth of the cryptocurrency space in the last 24 months has continued to allow the space to witness the emergence of new technologies, many of which are now boosting the market’s fortunes. Many crypto service firms, crypto exchanges, and existing blockchain networks have not also slowed down their participation, as they have been the critical factors to the birth of these new technologies.
BitClout, a new crypto firm that parades itself as a blockchain celebrity network, are the latest players in the space who have seemed to be making heads turn. The firm, believed to be selling NFTs of celebrities to consumers without the celebrities’ permission, has now reportedly made about $160 million, barely a week after operation.
BitClout offering NFTs in another dimension
Non-fungible tokens (NFTs) are unique digital assets that can take the shape of any form of media and are primarily obtained on the Ethereum blockchain. However, the tokens have been generating a craze in the crypto market, as everyone now seems to be so interested in the NFT market.
However, BitClout has now taken advantage of the rising interest of many in NFTs and has started selling tokens affiliated to more than 15,000 influential social media users as NFTs to its customers. Apart from the firm generating a massive income within a week, it has not started attracting new and potential investors into the space.
The nature of the business of BitClout is that they usually download the Twitter profiles of influential figures, placing a price on them based on the influencer’s profile. The profiles are now converted to tokens, where investors can now trade upon based on the celebrity’s popularity. An Elon Musk token’s rank will slightly be higher than Pamilerin’s token, despite both individuals being prominent Twitter influencers.
Fortunately for the influencer’s whose profiles are being used, if they tweet about BitClout, they will be entitled to a portion of the revenue generated with their profiles on BitClout. At the current figures, Elon Musk is entitled to almost $3 million worth of tokens on BitClout, while Pamilerin will be entitled to around $100,000 of tokens on the BitcClout platform.
Too early for fraud suspicions
Despite the success and uniqueness of BitClout, many in the crypto space have doubts about the new NFT retailer. Many are concerned that the business operation and outlook of BitClout are making them look like scammers, who will likely defraud investors of their funds.
Unfortunately, this is the first time an NFT- affiliated market is being labeled with such names, as many believe that the unique offerings of BitClout are too good to be true. The funds being generated on the website via Bitcoin currently go to Coinbase, Kraken, and Amber exchanges. However, the platform’s generated revenue is reportedly being moved to many other places, including Darknet-affiliated- Hydra.
Another suspicious angle is that BitClout users can not take their funds out of the website, as it can either be used to buy, trade, and even send to other users on the BitClout platform. However, despite these allegations, many are still expected of BitClout, as they are poised to change the NFT market’s face.