CryptoQuant Founder: The Impact of Social Media on Financial Markets Will Continue to Strengthen, Bitcoin is a Typical Example

ChainCatcher news, CryptoQuant founder Ki Young Ju posted on social media, "Since the invention of the internet, social media's influence on financial markets has increasingly taken on a religious tone. Elon Musk's Tesla, Satoshi Nakamoto's Bitcoin, and various crypto communities are typical examples.

The role of the 'prophet' in religion plays a crucial role in driving asset prices up. Prophets endlessly expand their thoughts about the future, often perceived to have reached a state of enlightenment, and this perceived enlightenment generates blind faith. This faith leads to the formation of religious communities that share the same beliefs. The stronger the followers' faith within the community, the more legitimate the asset is considered, even if it does not generate profits or create social value. This is a stunning phenomenon.

Investors must now pay attention to the impact of social media on investment decisions. When evaluating a publicly traded company or token project, it is essential to consider whether there is an influential 'prophet' on social media and how strong their followers' faith is.

Companies are rushing to enter social media, trying to form religious communities filled with blind faith. However, not everyone can become a prophet. Most fail to attract followers. Especially in the crypto space, if internal efforts to expand influence fail, they may externally hire Key Opinion Leaders (KOLs) to create false faith. Only a very few projects have succeeded in this regard.

The influence of social media on financial markets will continue to grow. As communities are made up of people, this religious tone will deepen. I believe that understanding how religion operates will help in understanding the future of financial markets."