According to a Cambridge professor, crypto influencers create inclusive communities that resemble cults to appeal to individuals’ desire for social belonging through platforms such as TikTok.
The research cited in Professor Alan Jagolinzer’s study indicates that TikTok and other social media platforms rely on social-psychological factors to attract audiences, including crypto investors, to influencers.
Jagolinzer stated that the desire to be a part of an “in crowd” is so profound that many individuals will indulge in self-destructive behavior to gain access or elevate their status in specific communities. “This is exploited by cryptocurrency influencers, who can generate financial gain from their followers.”
Additionally, he asserted that the popularity of the term “crypto bros” was influenced by young men disproportionately dominating crypto trading.
TikTok Algorithm Fuels Crypto Influencers Boom
TikTok provides crypto influencers with a vast and targeted audience, primarily composed of young adults, with over one billion users. The platform algorithm guarantees that content is delivered to the individuals most interested in a specific area. This renders it an ideal location for attracting the next generation of investors.
TikTok has also entered the cryptocurrency market by collaborating with creators to launch NFTs.
According to Jagolinzer, cryptocurrency names are also becoming more inventive, with some bordering on the absurd. He referenced coinage that was named after religious figures (JESUS), internet jokes (FART), and even politicians (King Trump).
This trend is not limited to regulatory figures, as some coins are named “Good Gensler,” a sarcastic jab at SEC Chair Gary Gensler, who is renowned for his skepticism toward crypto. It also extends to pop culture icons (such as the numerous Elon coins).
Professor Expresses Apprehensions Regarding Markets Influenced by Influencers
The professor cited an additional example demonstrating a potential strategy crypto influencers employ. It involves the influencer manipulating followers into purchasing a particular cryptocurrency, resulting in a temporary price increase.
Subsequently, the influencer sells their holdings and the price plummets. This is also referred to as a pump-and-dump scheme. It effectively enables the influencer to profit while their followers experience losses.
Additionally, he explored even more significant concerns regarding crypto influencer communities. He contended that cryptocurrency functions as a fundamentally egalitarian movement. He elucidates that populism inherently undermines extant regulations and stability measures due to its adherents’ distrust of these structures.
He observed that crypto leaders are occasionally revered as cult figures, which gives them significant influence over their communities. For example, Vitalik Buterin, the individual responsible for the development of Ethereum, has been praised as “the public intellectual that the tech world requires at this time.”
