The cryptocurrency market always needs new trends to lead the flow of money. And one of the terms mentioned most recently is “SocialFi”. But what exactly is SocialFi, why has it garnered attention, and what coins does Socialfi include? Can SocialFi become a trend in the near future? Join us to explore in detail in the content of the article below.
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What is SocialFi, and should you invest in it?
What is SocialFi?
SocialFi is an abbreviation for Social + Finance. It represents the combination of decentralized finance with social media platforms. SocialFi will be the gateway for users to access Web 3.0.
Currently, social networks like Facebook and Twitter are operating as Web 2.0 platforms. Users have created a lot of content, with value reaching billions of dollars on these social media platforms. However, the profits are earned by the platform owners.
Meanwhile, content creators do not benefit. => Benefits are not evenly distributed among the parties.
Therefore, SocialFi was born as a way to help content creators, influencers, and even ordinary users to control their personal information, data, and creative content on social media, and even make money by playing games, creating content, doing quizzes…
Some of the most prominent SocialFi projects currently
Have you understood what SocialFi is? Are you curious about which crypto projects currently belong to the SocialFi group?
For each trend in the electronic market, there must always be standout projects that lead the subsequent wave. For example, with Move-to-earn, it’s StepN. But what about SocialFi? We will introduce to you the most prominent projects currently, which have an effective operating model and a stable user base. If SocialFi becomes a trend, these will surely be the projects with the strongest growth.
Lens Protocol
Lens Protocol is a name that has been emerging recently, working on Social Graph and running on the Polygon network. This project is famous partly because it was founded by the Founder of Aave, one of the leading protocols in the market. Additionally, Lens is also highly regarded for its operational model, as it is not just a social network but can also become the “root” for a series of other web3 social apps to operate.
Specifically, with Lens, each user will have a unique NFT Profile. This will be where all your posts, comments, and other user information are stored. All your actions on Social apps will be NFTized and stored with your NFT Profile –> This will allow you to have complete control over your data.
Especially, Lens operates on a flexible module mechanism, meaning it can update without affecting user data. Because of this, Lens can easily combine with other Social apps to build a Lens Ecosystem. These Dapps can leverage the direct user base from Lens, Lens expands its model, while users profit from “selling” data to Dapps and using many Dapps with just one convenient profile.
Currently, there are 13 Dapps built on Lens and 12 Dapps cooperating with the ecosystem. Lens Protocol has a lot of potential to become one of the biggest Social Dapps in the cryptocurrency market.
Hooked Protocol (HOOK)
Hooked Protocol is a project that has been quite prominent in the cryptocurrency community recently as the 29th project on Binance Launchpad. To date, Hooked Protocol has launched its first experimental dApp named Wild Cash, aiming to become the Web3 community gateway in emerging markets like Brazil and Indonesia. Although only recently launched less than a month ago, Wild Cash has already achieved over one million downloads and is dominating the Google Play rankings in Indonesia.
Hook Protocol is developed in the direction of Learn-to-Earn or Quiz-to-Earn, allowing users to earn money through activities related to learning about Web3. The current spearhead of the project is the Wild Cash app with four main functions: Quiz-to-Earn, Social Referral, Proof-of-Work coin mining, and Stake & Swap. You can earn HGT through these four ways, which can then be converted to the token $uHGT and redeemed for money.
The governance token of the project, HOOK, was airdropped to the community after the Launchpad on Binance and currently has about 10% of its total supply in circulation. In the future, Hooked also plans to develop its own Layer 1 and ecosystem.
Galxe (GAL)
Galxe, formerly known as Project Galaxy, is a familiar project to those regularly participating in airdrop events. Therefore, many are aware of how the project operates. Galxe acts as an intermediary between users and projects. When users complete tasks audited by Galxe, they receive NFTs from collaborating projects. These NFTs not only represent user participation and experience but also offer a potential chance for future airdrops.
Overall, Galxe’s business model is quite complex. What has been mentioned above is just a part of the Campaign aspect of Galxe, but the project’s ambition is much greater. Galxe’s main goal is to build user IDs on Web3 and create a platform for buying and selling information (credentials). With what Galxe is aiming for, along with a strong investor team, the potential of Galxe (GAL) is enormous.
Mask Network (MASK)
Mask Network was created with the goal of becoming a bridge connecting internet users from Web 2.0 to Web 3.0. Web2 users can log in to their social media accounts through Mask Network. From there, they can use main features such as interacting with Dapps through Mask Network, engaging with NFTs…
In particular, Mask has many other applications such as encrypting user messages and tweets, bridging tokens, etc. Almost all Web3 activities can be brought into Twitter and Facebook through Mask Network. Additionally, Binance’s launch of the Bluebird Index, comprising BNB, DOGE, and MASK, shows Binance’s interest in this coin, making it one of the most focused projects currently.
Audius (AUDIO)
Audius is a decentralized music platform, a hub for artists with many valuable and inspiring works. Audius aims to build a music protocol for fans to share works and artists to publish new products.
Audius has also partnered with TikTok to allow artists to upload and share their works on TikTok’s Sound Kit, while fans can easily follow and share via links.
MovieBloc (MBL)
MovieBloc is a decentralized content and film distribution platform. It was created to offer a platform for transparent revenue sharing for audiences and content creators.
Specifically, with MovieBloc, content creators can freely share their content with audiences and receive transparent revenue without intermediaries. Meanwhile, viewers have access to various content and can earn rewards by promoting films, reviewing them, or creating subtitles.
STEEM (STEEM)
STEEM is a blockchain platform supporting community building and social interaction. It operates based on a fair accounting system that consistently reflects each individual’s contributions. Users create and manage their content on Steemit (like Facebook, Twitter, or news sites…), and then receive rewards in STEEM coin.
However, besides content creators, content managers are also a very important part of the Steemit community. Users supporting and helping to evaluate content quality are called “managers” on Steemit. They are rewarded on Steemit for helping maintain content quality.
Beyond the well-known SocialFi projects I just shared above, there are many other SocialFi projects in development. However, don’t underestimate them. Currently, these SocialFi platforms have attracted a large community and will certainly have potential if SocialFi becomes a trend. They include:
Thinkin
Thinkin is a SocialFi project based on Web3 that values user activity and rewards it for developing an environment that allows the community to grow organically. Anyone can become a KOL by participating in Thinkin and engaging in community activities, while proving their work through the NFTs they own.
GARI Network (GARI)
Following the Play – To – Earn craze, Watch – To – Earn is now becoming a new trend in Eastern countries. Gari is a video-sharing platform similar to Tiktok, where creators earn money and viewers receive rewards from GARI Network, a platform that operates similarly.
Here, GARI Network allows users to create and share videos with the user community on Chingari. Users directly control their assets, use internal and external application tokens for transactions with partners, vote for governance, promote interaction with the platform, and grow their user base.
Geojam (JAM)
Geojam is a social media platform that creates interactions between fans and creators. Geojam will be the bridge for fans to interact directly with artists, athletes, and influencers. The platform’s token is JAM, currently tradable on Kucoin, Binance US, Gemini, Uniswap.
Torum (XTM)
Torum is a SocialFi project into the metaverse, designed to create a comprehensive and connected one-stop ecosystem for users and cryptocurrency projects. It is a social project integrated with a productivity farming center for DeFi players. This is also an NFT market for cryptocurrency artists and Metaverse enthusiasts. The native token of Torum is XTM.
SaTT (SATT)
SaTT is a blockchain technology revolution in the online advertising market, using decentralized technologies and smart contracts to address online marketing issues.
SaTT plans to lead the SocialFi revolution by breaking the Web2 advertising model. With its user-friendly solution, SaTT aims to eliminate intermediaries by creating a direct relationship between brands, communities, and social media users.
Can SocialFi become a trend in the future?
What is socialfi? Periodically, the cryptocurrency market sees new trends to circulate money, and currently, many are talking about “SocialFi”. Personally, I see a lot of potential in SocialFi in the future, because:
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More than half of the world’s population, accounting for 58.4%, spends an average of 2 hours and 27 minutes on social media. This indicates the high demand for social media use, and SocialFi targets this very field.
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As blockchain becomes more widespread and people recognize the importance of decentralization, SocialFi will also gradually gain attention and acceptance.
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Meta – the parent company of leading social networks Facebook and Instagram, recently announced allowing users to showcase their NFT collections on these social networks by linking their personal wallet addresses. Earlier, TikTok launched an NFT collection, and Twitter’s tip feature was implemented with cryptocurrency payment options. This shows that major social networks are gradually integrating blockchain technology into their platforms.
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SocialFi is gaining attention and fomo due to the “Engage to Earn” mechanism. Most SocialFi projects can be joined for free or at a very low cost. For example, with Hooked Protocol, users can mine reward tokens with WildCash for free. This type of operation makes it easier to reach more users than ever before.
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The market needs a trend to attract money, and SocialFi is a strong candidate for this. Currently, the crypto market has been going through a prolonged winter, so almost no SocialFi projects have experienced significant growth. Therefore, the opportunity still exists for all of us.
However, SocialFi also faces many challenges. If you are researching and considering investing in Social Fi coins, try evaluating:
- What about the community? The success of a SocialFi project depends on the community (as the success of a social network largely hinges on its community).
- Tokenomics? Perhaps this is the hardest part of SocialFi projects. Many platforms initially promise high incentives to attract users, but then it turns into an inflationary tokenomics model. Currently, the reward model of SocialFi platforms is quite similar to GameFi. Therefore, without a reasonable reward mechanism and token burning, SocialFi platforms can easily follow the failure of the GameFi model. Therefore, you need to carefully evaluate this aspect.
- The project’s infrastructure? Facebook generates 4 Petabytes of data every day. There are 510,000 comments posted, 293,000 statuses updated, 4 million posts liked, and 136,000 photos uploaded every minute. Can blockchains cope with such a large volume of data? Because in the long run, a SocialFi that wants to develop and go the distance needs at least an infrastructure that meets the demands of its users.
However, despite the immediate challenges, SocialFi platforms are showing a lot of promise. As the world rapidly accelerates, blockchain technology is permeating everywhere, and the demand for decentralization and personal data autonomy is being pushed higher, it’s only a matter of time before SocialFi explodes. So, wait for the market to recover and witness SocialFi become a trend.
