How Can Retail Investors Trust Social Media Crypto “Influencers”?

I recently joined Mario Nawfal on his Crypto Twitter Space called the “Future of Crypto”. The show is the “premier” Crypto Twitter Spaces on X and I am grateful to him and the entire IBC Group for having me on the show to discuss various and important topics driving the crypto landscape with thought leaders in the crypto space. On this show, topics ranged from the regulatory landscape, spot Bitcoin ETF’s and how the flow of institutional capital hasn’t even yet begun, the impending Halving event and its potential effect on the price of Bitcoin, NFT’s, and so many more varied topics that are driving the future of crypto. One key topic that I covered was how our platform, Market Prophit has unique technology that quantitatively scores and ranks #CryptoX financial bloggers who tweet about cryptos where we have taken an objective, Wall Street like approach to identify those social media “influencers” that might be worth following. But unlike traditional social media metrics (followers, retweets, likes, shares, and others), our platform and our thesis, is that none of that matters when an investor should consider who to follow on X and who they should listen to get smarter about a specific cryptocurrency, or the entire space in general. All that matters is performance, “not” popularity. Unfortunately, most investors who own crypto or are considering getting into this space rely on those very social media metrics as signals of who they should listen to and follow. Frequently, those are the wrong accounts and can lead to potential losses (whether they’re late in posting crypto calls after the price has already moved; aka news services that are reporting after the fact, or worse, they’re scammers who are reeling in unsuspecting young investors into buying coins that have little to no value and are using retail as an outlet to sell into after they’ve already launched the coin and its price has risen. While crypto is an innovative space with great technology and great potential to transform the world and the future of value transfer, its nascency unfortunately invites many bad actors who take advantage of new traders who choose as their first asset class to trade crypto. These Gen-Z and millennials are crypto native and live on social channels which they use as primary forms of communication and knowledge discovery. Social channels are great but for the same reason that makes them great (they’re open, widely distributed, free networks that are global town halls), it is for exactly those same reasons that they are ripe for abuse and unfortunately crypto is a space that attracts that kind of behavior. Speech is free and is protected and it should be. But words matter and especially in areas of financial prediction, an objective, third-party validation of those crypto calls is sorely needed to solve a “big” and possibly the “biggest” problem that has ever faced a massive group of retail investors; especially in such a large, growing, and global industry that is set to change the financial world and the transfer of value.

I set out on a mission to provide that objective, third party score and attempt to be the official verifier of crypto social accounts on X and other platforms. I initially personally lost money (as many of my friends did as well) when I started getting involved in the crypto markets and I built a platform, that I as a crypto trader wanted to use myself to help identify the “right” accounts to follow. So, I applied my Wall Street hat to the cryptosphere in social media and have proven that popularity doesn’t necessarily mean performance. In fact, it is quite rare. It usually is largely the other way around. On Wall Street, only one thing matters: do you make money or do you lose money. That’s it. Of course, teamwork and other factors matter to thrive in any organization. But in a trading environment whether at a bank, hedge fund, or asset manager, only one thing matters: performance. And it should be no different in social channels. So, my mission that I set out when building Market Prophit was to provide that same type of scoring mechanism to crypto “influencers” or really “anyone” who posts a message or prediction about the price of a cryptocurrency. And we’ve proven it. Many of our best X accounts that we identify have little to no followers on X. But their performance would rival even some of the best traders on Wall Street. And our platform was built for me, my friends, and every retail investor to empower them with the tools as institutional investors have access to help them make more informed decisions and level the playing field by democratizing access to the same type of analytics and tools as institutions have. The beautiful thing about X is that it is an open and global “trade blotter” that everyone has access to. You can be just a listener and with our analytics, filter out the noise and focus on the right accounts to follow. You can also be a creator as well. If you think you have the trading chops and you do well, you can post your messages and get scored by our platform and rise to the same ranks as the best institutional traders out there and get noticed. It truly is a level playing field then and it allows “anyone” to get scored, ranked, noticed for their talents whereas in the traditional model, as we all know, access to rise to the ranks of Wall Street is a coveted and extraordinarily hard thing to do. But not anymore. So, if you want to record your best ideas, join X (if you haven’t already), tweet about cryptos using the $cryptoticker, and get verified by our platform. In the new world of social media, “anyone” can become a Market Prophit.

I encourage you to listen to the entire spaces to hear thought leaders discuss and debate this exciting space and times we are living in when discussing the Future of Crypto. Click on this link to listen to the Twitter Spaces.