Since it was created, Twitter has always been a place for people to talk about what’s trending. Many people rely on Twitter as the first place to hear new stories. Twitter currently has 199 million active users, and these users send out an average of 500 million tweets per day (Omnicore). There is no way crypto won’t be in the frontline of conversations on it. Like everything, these conversations have stirred up some pretty good things but have also had their cons. We will be discussing the pros and cons.
The Good Side of Crypto on Twitter
The new discussions about crypto on Twitter have allowed cryptocurrency to break into the mainstream. Crypto talks and discussions were regarded between just professionals and financial experts, but this is no longer the case. Questions are currently being asked and answered. Twitter users and influencers familiar with cryptocurrency are providing threads on what newbies are supposed to look out for when trying to buy new coins, and providing explanations on technical terms that are commonly used in the crypto world.
Last year, during the EndSARS protests in Nigeria, the Central Bank of Nigeria sent out a memo to banks to freeze all accounts of people who were suspected of having donated or provided services during the protest. Twitter helped spread the word that donations could be made anonymously through bitcoin. For Nigerians in the diaspora who also wanted to donate to the cause, they could also donate through bitcoin rather than going through the rather tedious traditional banking system of sending dollars home.
The Bad Side of Crypto on Twitter
FOMO (fear of missing out): At the tail end of 2020 to early 2021, Bitcoin and altcoins had a fantastic time, Bitcoin reaching a new all-time high, which was the same with Ethereum and many altcoins. This run also resulted in quite a lot of buzz on Twitter. Everyone wanted to hop on the winning team. It resulted in people taking up many uninformed decisions and delving into the market without arming themselves with the required technical knowledge. A man once said, and I quote, “Everyone’s an expert in a bullish market.” There were many opinions on the market, with everyone telling you to invest in this coin and that coin.
The Ugly Angle of Crypto On Twitter
Shitcoins became popular due to the insane gains that people realized from them.
Some of those coins multiplied over 1000% in just 48 hours, and people sharing their gains on Twitter made shitcoins become a trend. What are shitcoins? They are coins with no use case and are often named after animals and objects. These coins’ values rise so fast and are followed up by a sudden decline. Scammers took advantage of the naivety of many investors, promoting these coins, pushing up the prices of the coin as high as possible. After reaching a price they deem enough, they remove the liquidity they provided for these coins and leave the coins’ holder with little or no value. An account on twitter that promoted meme coins sent out a tweet promoting a meme coin SafeHaven that was supposedly unable to be rugpulled. A buzz was calling SafeHaven the next best thing to happen to crypto. Few days later, the value of the coin was close to zero, and the Telegram group that was created for the coin’s investors was deleted and all members were subsequently kicked out.
Tweets by influential figures like Elon Musk, CEO of Tesla and SpaceX, have also been shown to affect price changes on some coins even though most of the price action is short-term. His tweet on Dogecoin saw the coin price climb up. The same thing happened when he tweeted on his company Tesla selling some of its Bitcoin. These tweets saw the price of bitcoin dip from $65,000 – $45000.
Despite all of these we can’t ignore how twitter has been a driving force in the adoption of cryptocurrency. Crypto adoption is still occuring. An active community that will continue to help out newbies and existing members will be required. The market is evolving everyday and as such, these discussions will have to continue and there is no better place for such discussions like twitter.