The popularity of digital assets continues to grow in greater spheres. Social media platforms have not been quiet about the advancements in the crypto industry. Both negative and positive feedback follow digital assets from most people who troll the sector. The growth of cryptocurrency is now flooded by many projects that promise investors huge returns. Using social media platforms to investigate the advancement of digital assets is the right move.
Significance of social media platforms in crypto
Social media provides an avenue for traders and entrepreneurs to interact, exchange ideas and unravel hidden gens in a sphere full of many supporters. Social media platforms offer their users genuine expressions from people of different categories. Facebook, Twitter, Instagram, Pinterest, Linkedin and other social media platforms have sustained discussions on cryptocurrencies.
Bitcoin and Ethereum grew to greater heights in the past few months to attain immense highs compared to traditional forms of investments such as bonds and stocks. Following the collapse of FTX, cryptocurrencies have received a backlash from many social media users. Although there have been negative sentiments in social media for the past few days, people who invested in cryptocurrencies during their inception continue to earn profits.
The growth of crypto depends on the number of internet users. Social media sites highly contribute to increasing the number of people using the internet daily. Social media platforms like Twitter, Telegram, and Reddit continue pushing the crypto industry to greater heights. According to GlobalData, one of the social media analysis companies, sentiments relating to cryptocurrency and blockchain increased in 2021. According to the data collected, Fintech experts, technical experts and social media influencers were critical in improving the discussions in social media.
Elon Musk was among the most influential social media figures advocating for crypto. Musk, an entrepreneur, celebrity, and founder of Tesla and SpaceX, have worked hard to popularize his enterprises through social media. Through his tweets, Musk has contributed to boosting the attractiveness of DOGE, one of the canine-themed meme currencies.
The data analytics revealed that Bitcoin was the most mentioned cryptocurrency on platforms such as Twitter and Reddit in 2021. Twitter takes the most credit for leading the drive toward cryptocurrency investment. According to GlobalData Social Media Analyst Smitarani Tripathy, platforms such as crypto-twitter, which has been operational for the last year, have attracted many investors toward cryptocurrency. The analyst indicated that social media platforms’ impact on cryptocurrency led to a 400% conversion rate in 2021.
Although the report indicated that Bitcoin dominated discussions in social media, there were discussions relating to Ethereum, Solana and Dogecoin.
The wave of coins in social media
Twitter, Facebook, and Reddit are powerful social media platforms that influence most attributes in life. Most users search for the best crypto projects through social media platforms. Highly trending crypto projects attract people’s attention compared to little-known projects. Most investors have continued to join crypto-centric social media platforms to gain familiarity with the project managers, get the opinions of the influencers and maximalists, and know what detractors think about a particular project.
Sentiments made on Twitter have an impact on the decision-making process of an investor. Negative sentiments made on social media and supported by many experts can make investors fear purchasing the project.
Social media sentiments 2022
The collapse of FTX is firing social media sentiment relating to cryptocurrency. Most analysts and experts wonder how the third-largest crypto exchange in the world could collapse. According to the platform of Social Media Analytics by GlobalData, cryptocurrency suffers multiple macro factors, such as increased levels of inflation that contributed to a large-scale sell-off and others avoided investing in riskier assets.
Opinions by influencers
GlobalData’s Social Media Analytics Platform captured opinions of some sentiments made by influencers. According to Ian Brown, one of the professors at CTS-FGV, the fall of cryptocurrency is nigh. An excerpt from his sentiment indicates, “Crypto-currencies are going to die… Ponzi schemes without new suckers disappear.” He noted that the collapse of FTX was one way of pulling money out of crypto.
According to the chief economist, Peter Schiff, FTX becoming bankrupt is a clear indication that the rise of Bitcoin to a high of $69,000 was a fraud. In his sentiment, he denoted that “Bitcoin mania is over.”
A computer scientist by the name of Paul Graham stated, “A person I have known for more than ten years, who I consider trustworthy, is convinced the crypto-currency economy will shortly experience a systemic risk. I don’t know anything concrete, but if I were exposed, I would be concerned.”
Coins with top mentions on Social media
Shiba Inu (SHIB)
The meme currency came into the market in 2021. It received a massive social media discussion when its anonymous creator, Ryoshi, deleted all the previous posts concerning the project. Most crypto enthusiasts did not take it lightly and wanted to know the motivation behind the deletion. The anonymous project lead, Shytoshi Kusama, reassured the crypto lovers of the project’s continuity and applauded Ryoshi as the best crypto founder. The coin gained greater prominence after the incident.
Poodl Token (POODL)
Poodl Token (POODL) is making trends in social media after its development team announced securing a partnership with LakeView Meta. The meme coin with doggy-theme continues to take social media by storm. The collaboration between LakeView Meta and Poodl brings an exciting moment to NFT users and brings Web 3.0 into reality.
The announcement led to the increased popularity of the meme token in social media. According to BSC Daily, POODL has become social media’s most engaged BNB-powered project.
Conclusion
The number of cryptocurrencies has risen over the past few years, and most investors continue looking for the best coin in the market. Social media sentiments help investors know the crypto investments fit their portfolios.
Newbies do not need to worry about how to engage in crypto because crypto-savvy users on Twitter and Reddit provide the required help. Seasoned investors also equip their profiles through social media. Although the current market is full of downfalls, social media sentiments can direct investors to profitable ventures.