- Bitclout founder Nader Al-Naji’s DeSo project has raised $200 million from high-profile investors
- Bitclout will function as one of the apps on the DeSo blockchain
- Bitclout has attracted a lot of criticism for featuring celebrities and influencers on their platform without asking for permission
Bitclout tried to revolutionize social media, but was instead met with controversy
Bitclout is a cryptocurrency-powered platform that launched in March this year, and quickly attracted a lot of controversy. The main idea behind the platform are “creator coins”, which are crypto assets tied to popular users, like Elon Musk or Ariana Grande. The Bitclout platform itself also comes with its own native token called CLOUT. Users can buy these CLOUT tokens with Bitcoin, and spend them to purchase creator coins.
However, there’s a catch – Bitclout launched creator coins tied to famous people without asking them for permission. For example, both Elon Musk and Ariana Grande are featured on the front page of Bitclout and have creator tokens associated with them that users can buy. Neither of them has signed up to the platform.
Bitclout essentially took Twitter accounts of famous people and influencers and featured them on their platform. These Twitter users have the option of verifying themselves and claiming the Bitclout profile associated with their Twitter account. Even if they don’t claim their profile, Bitclout still gives users the option to buy their “creator coins”, which has been a major source of criticism for the project.
For example, the most valuable “creator coin” on Bitclout is @elonmusk, even though the profile hasn’t even been claimed by Musk.
Users can buy “creator coins” of celebrities that might not know the Bitclout platform exists or don’t want to claim their profile. Image source: Bitclout
Bitclout founder Nader Al-Naji raises $200 million for his decentralized social media project DeSo
The Bitclout platform was founded by “Diamondhands”, an anonymous developer. What made the situation even more confusing was that the project was backed by big-name crypto investors like Coinbase Ventures, Sequoia Capital and Winklevoss Capital.
Even though “Diamondhands” was technically anonymous, users quickly figured out that the person behind Bitclout was most likely Nader Al-Naji, who previously founded the now-defunct stablecoin startup Basis.
Any doubts about the real identity of “Diamondhands” have now been dispelled, as Al-Naji has confirmed that he founded Bitclout. Even though the price of CLOUT has tanked since launch and the platform attracted heavy criticism, this doesn’t appear to have dissuaded venture capital investors from giving Al-Naji more capital to realize his vision.
Per a report from The Block, Al-Naji’s project has received a $200 million investment from VC firms like Andreessen Horowitz, Social Capital, Polychain Capital and others. In addition, previous backers like Coinbase Ventures and Winklevoss Capital also contributed to the investment. The investors used Bitcoin to purchase the project’s tokens from a treasury wallet.
The project is also rebranding itself to DeSo, which stands for “Decentralized Social”. Alongside this, the CLOUT token is being renamed to DESO. According to Al-Naji, Bitclout was meant to be an “early prototype” to give the project an opportunity to test and gather information on how to best design the DeSo blockchain. However, Bitclout will continue to live on as one of the many applications built on top of the DeSo blockchain.
The markets for the DESO token have reacted positively to the $200 million investment into DeSo. On the Blockchain.com Exchange, the price of DESO has increased by 32.2% in the last 24 hours.
Source link: https://coincodex.com/article/12363/bitclout-founder-raises-200-million-for-decentralized-social-media-blockchain-project-deso/