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SocialFi And Sights of Development

Why SocialFi?

As we all know, Twitter and Facebook have become social media giants that have a huge influence on the way we consume information and interact online. When the power lies in certain corporations, problems arise: the spread of misinformed and inauthentic news, privacy threats, and more. These are some of the key issues that users have addressed recently about the social media ecosystem which include scandals involving large corporations stealing user information and reselling it on the black market or malicious third parties. For instance:

  • 1,5 Facebook users’ personal information has been stolen.
  • TikTok spent 92 million dollars to settle the scandal of collecting user information.
  • Countless Youtube accounts have been hacked to be resold on the dark web.

The inadequacies from centralized social media have prompted new improvements that we still find difficult to replace and rely on. Could the advent of decentralized blockchain technology be the key to breaking their control on our online social lives, while connecting us with interests and communities, but still protecting user data? With the beginning of the DeFi era, an innovative concept, a “new trend in the future”, the idea of ​combining social networks and decentralized finance was formed, called SocialFi for short.

SocialFi = Social + Defi: Social network combined with decentralized finance

 

What values does SocialFi provide?

  1. Solutions to the inadequacies of the common social media:

First, SocialFi will solve critical problems such as a disproportionate revenue model because most of the social media platforms hold the majority of the revenues. Furthermore, users’ personal data are being tracked and hacked by security errors, spam, advertisements, etc.

  1. A sense of “limitlessness”:

With its extensibility, SocialFi can provide users with open virtual spaces, connecting a variety of different applications, diversifying from images to content, and building a dynamic environment for users to become boundaryless. 

  1. “Financial motivation” for the people:

By leveraging a huge market share of social network users, SocialFi can create a large economic system where users can freely exchange their assets, and those assets have real-world value. Users can create content, share articles to earn likes, votes, and generate income. 

  1. Transparency:

One outstanding feature of decentralization is transparency. If you are worried whether donations require  a”statement”, with SocialFi, all transactions will be secured, verified, and transparent so that the charity organizations can be “worry-free” when raising funds from the community.

  1. Unlocking privileges:

Token holders will enjoy certain attractive incentives when participating in the socialFi systems created by celebrities. This privilege is unique and cannot be copied. 

 

SocialFi’s first sign of development

Until now there are more than 30 outstanding Social Tokens. The total market capitalization of Social Token is $416M. The number of token holders is increasing and there are many established communities created in recent months, such as Bitclout ($CLOUT), Whale ($WHALE), or Friends with Benefits ($FWB). 

Besides these communities, we can start to see the development of the trend as the number of individuals, influencers, and KOLs starting to create Social Tokens and their value is increasing. Celebrities have already started reaching out to Social Tokens like rapper Lil Pump with $PUMPCOIN, allowing token holders to play 1:1 games with the rapper. Or rapper Lil Yachty has also raised more than $276,000 through the sale of $YACHTYCOIN. Token holders can receive memorabilia from Lil’s career and meet their idols online.

Conclusion

SocialFi can become a game-changer on the Internet,  similar to DeFi or Play-to-earn. However, it is still in a very early stage, so there are many risks of scamming and rug-pull that require careful research and immense trust before investing. Stay tuned for more research by Barmy. Thanks for reading!

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