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- Social media influence is a double-edged sword for cryptocurrency
- Influence also dubbed susceptibility
- Cryptocurrency can surge or fall by a single tweet
Cryptocurrency has now got a new group of motivators, especially after its biggest supporter Elon Musk turned Judas and left it bleeding with his tweets and U-Turns. Enter the new Samaritans to tend to the wounded cryptocurrency industry. An informal group of cryptocurrency advisors uses TikTok, Discord, and similar platforms to advise and educate about the finer points of the trade. Skeptics are quick to the fact that they could be conning the greenhorn crypto investors.
Social media influence can make or break a digital coin
Social media influence is a double-edged sword for cryptocurrency, and its influence could also be dubbed as susceptibility. wsj.com has chronicled the life and exploits of one such Crypto investor who made millions and was influenced by a TikTok video by one such crypto enthusiast.
Joel Davies joined TikTok when the world was reeling from the Covid-19 epidemic. Lockdown was announced in the UK, and Davies, who just finished film, television, and digital production at Bath Spa University, started to dabble in cryptocurrency. He was interested in cryptocurrency since the age of 16, but money was scarce, and he could not do much other than a small investment in Bitcoin. Post-graduation, Davies returned to his parent’s home with some cash made from savings at his marketing job. One evening he logged into a Discord server and first contacted Dennis Liu, 26, a leading crypto influencer on TikTok, who also goes by the name VirtualBacon.
Davies learned quickly, aided by Liu’s down-to-earth and straightforward methodology, focusing on research and analysis. Further encouraged by like-minded people and their TikTok videos, he learned the finer points of the crypto trade. The first investment which Davies made was one month past the lockdown. In a year, Davies initial investment of 2,500 GBP into nearly 100,000 GBP.
Social media can influence cryptocurrency.
The above case is a glaring example of how social media can influence cryptocurrency. A single tweet can pump Dogecoin values to incredible heights. However, the same tweet can take it to the nadir. One TikTok user conceived a coin SCAM as a joke. The coin, an acronym for Simple Cool Automatic Money, gained a market cap of $70 million in an hour, and today its value is $850,000.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
