Saturday, 30 September 2023

Crypto News hype unsustainable? Critics give it only months to live hype unsustainable? Critics give it only months to live, a new decentralized social media (DeSo) app has rapidly become one of the hottest new things in crypto, with over 64,000 new users and more than 24,000 ETH in trading volume since its beta version launch of Aug. 11. 

While many crypto industry heavyweights have praised the app for bringing thousands of people on-chain and inspiring sign-ups from even non-crypto figures — such as gaming YouTuber Faze Banks and Russian protest group Pussy Riot — some have warned it’s at risk of burning out.

Built on Coinbase’s layer-2 network Base, is a platform that allows users to purchase shares of their friends and influencers, which in turn grants them access to a private chat with that user.

Speaking to Cointelegraph, crypto commentator Yazan pointed out a number of troubling factors that led him to believe the app has between six and eight weeks before both share prices and general activity begin to nosedive.

Yazan argued there has been an unsustainable rate at which share prices have increased.

“The fucked up market making that guarantees that the app makes the most money along with creators — the price goes up too fast,” he said.

“How come there’s 100 holders and the price is 1 ETH — 1 ETH to be able to see a private chat?”

According to pseudonymous software engineer Cygaar in an Aug. 20 X thread, the price of someone’s shares  on is proportional to the square of the outstanding supply. As the supply increases, the price increases exponentially.

Drawing parallels to BitClout — a predecessor DeSo app from 2021 — pseudonymous Web3 marketer Legendary shared his bearish prediction on the longevity of

“Absolutely not. I think the platform will collapse as BitClout did. We are in a bear market, and there’s nothing to do. Everyone jumps on an opportunity to make money, but I…

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