It was a subreddit group that Dogecoin to skyrocket by 1100% within two days in January 2021. This group called WallStreetBets (WSB), made up of amateur stock traders, united against traditional financial institutions. Their aim was to pump stocks that hedge funds betted would fall in value, such as Blackberry and Nokia. Two weeks later, this spilled into the crypto market, particularly to Dogecoin – and that was how the meme coin saw its biggest rally that year. This price surge was further consolidated by a from Elon Musk. caused frenzy tweet Though DOGE will drop in price, these events showed the immense power social media could wield over the financial market. They also highlighted the fact that communities are the core of the cryptoverse. Social Media: A Financial Leveler? For decades, financial markets were cryptic ecosystems reserved for a few. People who wanted to make investments had to depend on brokers who would help them with the paperwork. But when Bitcoin came on the scene, the financial markets saw a revolution. The average Joe became interested in making investments and did not require a broker to assist him. The average Joe had total control over the purchase and management of his assets. Furthermore, he did not need to consult financial advisers to know how the market worked. This is because he had access to several social media platforms where he could interact with like minds with common interests. He exchanged ideas with them and received guidance on how to make profitable financial decisions. always Over time, these interactions have evolved into solid communities; communities like WSB that are powerful enough to determine the price movement of an asset. So what makes social media communities so influential in the crypto space? Why Social Media Communities Play a Huge Role in Crypto The advent of social media democratized information and eliminated the barriers to networking and community building. These solutions tie nicely with the goals of cryptocurrency, where finance is democratized, information flows freely, and communities are cultivated easily. Through social media, crypto users can quickly disseminate information, share knowledge across borders, and shape market trends vis-a-vis global trends. Rapid Information Dissemination and Real-Time Updates Amid the collapse of the Silicon Valley Bank in early 2023, poor communication was as one of the key reasons for its eventual ruin. pointed The Communications and PR department of the bank may probably disagree with this. They'd say that they constantly updated their website explaining their financial crisis. However, while their website was littered with very important information, their Twitter page was cold. Did they forget that Twitter is one of the foremost points of call for updated news, especially crypto since SVB was heavily linked with several crypto businesses? While SVB may not be a traditional crypto company, it was described as the for many crypto businesses. lifeline So why did SVB fail to own its story on Twitter? Why did they allow people to come up with their own narratives which worsened the bank run? You see, cryptocurrencies thrive on real-time information, and social media platforms serve as the perfect hot spots for disseminating breaking news, updates, and analysis. Twitter, in particular, is a hub for influential figures, analysts, and enthusiasts to share insights and commentaries that can significantly impact the market. Borderless Transmission of Knowledge Crypto enthusiasts and investors use platforms like Twitter, Reddit, Discord, and Telegram to stay informed about the latest news and updates in the industry. When there's breaking news about a significant development or a change in the regulatory landscape in a country or region, it spreads rapidly across borders through these platforms. Traders and investors also use these platforms to share market insights and analyses. Shaping Market Trends The ability of social media platforms to quickly disseminate information and foster community engagement enables them to significantly impact market trends. For instance, during the COVID-19 pandemic, social media played a crucial role in making users interested in decentralized finance (DeFi) projects. As users shared success stories and ROIs on social media, more people became curious about DeFi, leading to a surge in its popularity and market capitalization. Let’s not forget how Elon Musk's tweets and public statements significantly the crypto market, particularly Bitcoin and Dogecoin. Speaking of Dogecoin, social media memes, and viral trends birthed a new crypto ecosystem known as meme coins. The value of these coins greatly depends on how well these memes can sustain their buzz on social media. But do all social media platforms command the same sphere of influence? Where do the biggest crypto communities reside on social media? impacted Social Media Platforms: The Big Five in Crypto Two facts: (1) There are over 100 social media platforms, and (2) That a social media platform is popular globally does not mean it would be popular in the cryptoverse. In the cryptoverse, there are five major social media platforms: Twitter, Reddit, Telegram, Discord, and YouTube. And companies like Choise.com know this. Twitter Twitter boasts of an active crypto community with influential figures, experts, and analysts sharing market insights and project updates. The platform's real-time nature makes it a go-to source for quick updates. Choise.com has over 20K followers on Twitter. Reddit Reddit hosts numerous dedicated cryptocurrency subreddits, such as r/Bitcoin and r/Ethereum, where enthusiasts engage in lively discussions about specific coins and projects. These communities foster a sense of belonging among like-minded individuals. Telegram Telegram is renowned for its real-time discussions and project-specific channels. For Choise.com, this is where developers and community members interact directly, making it an essential communication tool for Choise.com. YouTube YouTube hosts a plethora of crypto-related channels that offer educational content, project reviews, and analysis. It serves as an excellent resource for newcomers seeking to understand the intricacies of the cryptocurrency world. Discord Discord has become a popular platform for crypto communities and project-specific servers. Discord servers are known for their interactive nature, allowing crypto projects to have direct interactions with their community members. With over 21K followers, Choise.com has its most followers on Discord. Choise.com and other crypto companies use Discord to facilitate direct engagement between project teams and their supporters, and encourage a sense of active participation. This is the reason several projects use Discord for decentralized governance. The Role of Social Media in Crypto Governance With freedom and democratization at the heart of crypto, it was not long before decentralized autonomous communities began to emerge. These communities called Decentralized Autonomous Organizations (DAOs) operate without a central authority, utilizing distributed decision-making processes, voting mechanisms, and transparent rules to achieve their objectives and manage resources efficiently. As these organizations gain momentum, the power of social media as a dynamic change catalyst and a tool for community engagement becomes undeniable. Social media platforms like Discord empower crypto enthusiasts and stakeholders to voice their opinions, propose innovations, and collectively influence project development. So What Does the Future Hold? There is an increasing integration of social media platforms with blockchain projects. Blockchain-based social media platforms are emerging, providing crypto incentives for content creators and users. This integration will enhance user engagement and token utility within these platforms. Also, the ease of access and engagement provided by social media platforms will contribute to the gradual mainstream adoption of cryptocurrencies. As more people join these communities, awareness and acceptance of digital assets will grow. Conclusion The influence of social media communities on the cryptocurrency space cannot be understated. From rapid information dissemination to shaping market sentiment and governance decisions, these communities have become integral to the industry's growth and development. As social media continues to evolve, its integration with blockchain projects and the rise of tokenized platforms will further incentivize community engagement and drive mainstream adoption. Decentralized governance models like DAOs promise a more inclusive and democratic future for the cryptocurrency space. As the industry continues to mature, it is crucial for users and stakeholders to recognize the potential and responsibility that come with this influence, paving the way for a more decentralized and prosperous future for cryptocurrency.

This story contains new, firsthand information uncovered by the writer.

This writer has a vested interest be it monetary, business, or otherwise, with 1 or more of the products or companies mentioned within.

The Convergence of AI and Blockchain: A Game Changer in the Tech Industry

Democratizing Finance: How Social Media Transformed the Cryptoverse

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Bitcoin and Gold Are Duking It Out to Determine Which is The Ultimate Safe Haven in 2025

$1B Capitalization: Meme Token Launch Strategy Under the Microscope

$1M Hackathon Prizes Announced By MultiversX to Expand the Blockchain Ecosystem

0 to $2000 MRR in One Month - Lessons Learned

07/03/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

Bitcoin and Gold Are Duking It Out to Determine Which is The Ultimate Safe Haven in 2025

$1B Capitalization: Meme Token Launch Strategy Under the Microscope

$1M Hackathon Prizes Announced By MultiversX to Expand the Blockchain Ecosystem

0 to $2000 MRR in One Month - Lessons Learned

07/03/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

Light-Mode

Classic

Newspaper

Minty

Dark-Mode

Neon Noir

Minty

HN StartUps