Cryptocurrencies are not the first thing on one’s mind when they hear about TikTok.
But the all-singing, all-dancing application might catalyze part of the next crypto boom, believe some prominent industry analysts.
TikTok; a new crypto-distribution tool
Users of the controversial video-sharing application were behind Dogecoin’s 40 percent pump this week. At press time, the price action shows no signs of stoppage; TikTok’s shillers target a price of $1 per DOGE.
This is causing traders like ex-Messari product head Qiao Wang to consider TikTok the new platform for crypto-marketing:
Think TikTok will actually become the biggest distribution channel for crypto products.
— Qiao Wang (@QWQiao) July 7, 2020
For those remotely involved in the crypto-space, TikTok might seem the logical outlet for marketing obscure platforms. After all; YouTube, Facebook, Instagram, and Google are notorious for banning cryptocurrency content—with some opacity around their reasons for doing so.
It’s for good reason. Free-for-all media brought with them scams, hype, and presence-based crypto valuations in 2017-18. Prices were not based on technology, but on which project was a better marketer.
However, this didn’t bear well, as most in the crypto-space know. An estimated 99 percent of all ICOs fell to pre-listing prices, with only a few survivors actually launching any product or fulfilling their roadmap.
Where top crypto investors spend most of their time.
2010-2013: Bitcointalk
2014-2015: Reddit
2016-2020: Twitter
2021-2030: TikTok https://t.co/EfYwF4Q5FU
— Qiao Wang (@QWQiao) July 7, 2020
Meanwhile, the user behind the recent DOGE pump seemed to call it a joke:
This tiktok I made the other day as a joke about Dogecoin went mega viral and now the crypto’s value is up 16% in the last 24hrs lol https://t.co/HimKE2VAD2
— James Galante (@Galante97) July 7, 2020
Nevertheless; altseason seems to be returning. And this time, it’s bringing TikTok for the ride.
Binance’s CZ on why this altseason will be different
Binance founder Changpeng Zhao, popularly known as CZ in crypto circles, tweeted June 8:
Not all alts will pump during the next #altszn. If a project has been around for 3 years but not much to show for, then…
A few that have consistently pushed development will thrive.#BUIDL
— CZ BINANCE (@cz_binance) July 8, 2020
CZ added the few projects that “have consistently pushed development will thrive.”
This list won’t be vast. As CryptoSlate reported in 2018; over 600 cryptocurrencies are “deadcoins,” or projects that no longer feature any development, value, and have zero token activity.
At the time, the metrics meant one in three ICOs was a dead project. Now, with over 2,600 cryptocurrencies as per CryptoSlate’s coin trackers, this number is ought to have changed.
Deadcoins.com is a site dedicated to the cause. Its trackers show over 1,900 crypto projects are either dead, exit-scammed, or seen their developers abandon the project.
Only time will tell if investors will be smarter this time or fall into a scam-trap again.
(Author’s note: CryptoSlate data trackers are real-time are subject to change from the figures mentioned above.)
