On Wednesday, BitClout re-entered the market, causing the price of celebrity social coins to spike.
Following a one-week shutdown, the social marketplace BitClout has reopened.
What Is BitClout and How Does It Work?
Content developers, celebrities, and well-known crypto personalities will create a “maker token” that can be traded for the platform’s native currency.
The platform advertises itself as a decentralized social network that enables social clout to be tokenized. Whether or not they participate, each Twitter profile is given a BitClout account.
Currently, Elon Musk is in charge of BitClout’s listings, and his coins have a market cap of $29 million. Apart from well-known celebrities such as Katy Perry and Kim Kardashian, the list also includes prominent crypto personalities such as Ethereum founder Vitalik Buterin and Binance CEO Changpeng Zhao.
Those profiles, on the other hand, were not actually created or claimed by the celebrities themselves. FTX CEO Sam Bankman-Fried is one notable exception, as he has asserted his BitClout identity.
The platform’s native digital currency must be used for all transactions. Users must submit Bitcoin to BitClout, which is then converted to a BitClout balance, in order to buy the currency.
The Mysterious Origins of BitClout
BitClout’s operators are unknown. According to the project’s whitepaper, it is a fully open-source project with no outside support. Several big-name venture capital firms are believed to be behind BitClout, according to Billboard, but the project has said nothing about it.
Industry insiders and influencers were able to pre-mine some of the most valuable coins when BitClout was locked. Others accused the project of unequal token distribution as a result of this.
Many who purchased social coins during the closed beta phase last week can now sell them for a profit. As a consequence, the value of certain coins has skyrocketed.
The Brief Outage of BitClout
BitClout was taken down last week and relaunched on March 17th. Despite its brief return, the site appears to be offline once more: visitors with a password are advised that the site is under maintenance.
The BitClout blockchain is also undergoing backup, according to BitClout Pulse, the site’s public frontend.
The fact that the platform is selling coins linked to celebrities’ identities is legally dubious, implying that the site could face potential availability issues.