Ever since 2021, the buzz around SocialFi has been loud but it hasn’t really taken off. The initial concept was pretty alluring—blending the dynamics of social media with financial strategies to create platforms that not only engage but also financially reward users. Several companies gave it a shot, and Chainslab even penned a thought-provoking article on the topic. If you’ve got a moment, give it a read.
In a nutshell, SocialFi is suffering from an identity crisis. What exactly is SocialFi? Is it a social media platform that uses blockchain instead of centralized servers? Traditional social media was designed to connect people, but will the average user really care about the blockchain aspect? Who are we really connecting?
Then there’s the monetization angle. Is SocialFi meant to let influencers cash in on their followers, similar to platforms like Bitclout or Friend.tech? And if so, where does the money come from? Picture this: an influencer with just 50 to 100 followers spikes their token price to $5,000-$6,000 instantly. Sure, someone will buy it—after all, people pay $500,000 to hang out with Jay-Z. But personally, check out this clip for a laugh:
But here’s my gripe: it's basically a Ponzi scheme. And not even a good one. It's a flimsy Ponzi that lacks the revenue to justify its existence and is destined to spiral down just like every notorious Ponzi in history.
In my opinion, a robust SocialFi platform needs to do two things: connect the right people and generate a solid revenue stream. This revenue should fuel the platform, keeping the economic wheel turning and possibly sustaining the model.
So, who really needs a SocialFi platform for connections, and where will the money come from? We at deFarm believe we've cracked that code.
deFarm LFG.
Want to print your doc? This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
SocialFi is Fcked