(Last Updated on April 27, 2021)
There are a lot of rumors swirling around Crypto Twitter of the probability that Bitclout is a scam, or at least one of the more deceptive venture capitalist lead presale junk projects since 2017 ICOs..
And I think they are right.
Early investors buy private presale coins stupid cheap -> dump on hyped-up noobs for 100x gains
Locking the website for private, presale and then dumping on new investors is not a new tactic in crypto.
Selling ERC-20 tokens based on social media profiles before any consent from the owner. Then letting owners “claim” their profile well after pre-mine closed, but pretend they now inherent a ton of free money yet cannot unlock it and sell. A fairly basic website platform that assigns fraudulent value to thinly backed, or not backed at all, Bitclout Tokens.
Private pre-mined token sales and pre-launch investor discounts..
Bitclout is nothing more than a scummy, presale ICO of useless tokens that represent social influencers egos online. A bunch of mainstream VC’s and capital groups are throwing their money at any hyped up NFT token project that moves. This was just another quick cash grab that was thinly veiled as some social influencer dick measuring contest.
Pump and dump.
So what is Bitclout?
- NFT style hype website that promotes social media reputations as tokenized value
- Profiles are valued through purchase/sale of “creator coin” tokens
- Investors can buy and sell tokens based on any profile
Bitclout utilizes ERC-20, proof-of-work, creator coins tokens as the value currency for social media reputations. Every influencer or high end social media profile has it’s own creator coin that traders can buy and sell. It was created by an anonymous group of developers who are still considered pseudonymous at this point.
Investors and profile owners receive the “Bitclout Token” or “BTCLT”.
It cannot be changed back to Bitcoin at this time.
Reputation = value in BTCLT
Why is Bitclout scammy junk?
-> Large private, pre-mine of CHEAP tokens sold to early investors (common crypto venture capitalists)
-> Developers are anonymous
-> Falsely inflated profiles, values, and token $$$ – no USD locked, smart contracts, or any value added behind these tokens
They are literally just “making up” values for individuals profiles based on whatever metric the founders deem accurate. Looks like some loosely tied calculation to the overall initial pre-mine investment amount which lord only knows how much of those funds are available or already used. Does not look to be any ETH depository or token locked up as collateral for smart contracts or dAPP use. Basically just looks like minting some coins and creating a ton of false wealth and values that have no ETH, USD, or any other value behind it.
Oh and by the way, if you want to swap your Bitclout back for Bitcoin, it’s damn near impossible right now. The developers have not setup proper smart contracts or exchange to convert BACK into Bitcoin.
Can’t convert Bitclout back to Bitcoin – you are stuck with the scam tokens..
So once you get those beautiful Bitclout sh**coins – you’ll never get rid of them except to the next bagholder..
But but but..the BIG names invested in Bitclout, so it MUST be legit?
Chamath and all the boys are going to DUMP on you.
Have fun holding bags of worthless Bitclout tokens…
The largest, main stream crypto investors are all involved in Bitclout’s early seed rounds which yielded funding in excess of $165 million dollars. This includes Coinbase ventures, Chamath Palihapitiya, Winklevoss Twins, Alexis Ohanian, Sequoia Capital and other well known investors that have been historic in launching successful cryptocurrency companies.
But has their greed gone too far?
Hype always brings massive opportunity that tempts investors to slack on morals and enjoy some quick returns. If it is legal, who can blame them and it will not change until we see the SEC bring the hammer down on these supposed securities. Until then, a lot of new crypto investors will get hurt and lose money quick. Bitcoin will continue to build confidence and trust while these scammy, vaporware ICO tokens will always devalue our space over time.
Time will only tell, but I can’t see how this is much more than a “dick measuring contest” for egotistical social media influencers. There will most likely be some hype around the site and some run of participation, but expect this to fade quickly as the tokens lose massive values as early investors dump on new incomers.