Musk’s acquisition of Twitter has led to a growing debate on “Whether SocialFi is going to be the next Big Trend?”. On May 27th, BOOM organized a Twitter Space to talk this theme over. The event was hosted by BOOM CMO Jeffrey, and we successfully invited five guests,including Sunny(head of marketing of ShowMe),ZiShi(founder of 321DAO),DaiXiexie（famous Twitter KOL）, BoYan（researcher of Draper Dragon Fund）and Joe（product manager of Relationlabs).
Full version venue: https://twitter.com/i/spaces/1lDxLLrkROYxm?s=20
And here comes the recap:
Q1 How Do You Think about Musk’s Acquisition of Twitter?
ZiShi: Musk’s acquisition of Twitter can be interpreted as an attemptation that an individual capital maniacs tries to deconstruct the traditional consortium.It’s a game between capitalists. The ultimate logic is about Nasdaq cutting the world’s dividends through dollars.
BoYan: Musk’s move has made an attempt to promote ownership rights, Token payments and free speech. A crypto proponent took a wonderful step, but we still need to sit tight and see.
Q2 Compared with traditional social media, what are the advantages of SocialFi?
DaiXiexie: As a product in the era of Web3.0, SocialFi carries the natural advantages of decentralization and anti-censorship. Even in the crypto world, SocialFi has its own advantages to break the game.
With its media attributes, the product form of SocialFi is undoubtedly excellent. When it owns the pipeline, SocialFi can be more than a trade and actually serve some hot project parties.We need a strong product to step up if we want SocialFi to survive well.If crypto is to go on in a healthy way, there is actually a great need for a strong product like SocialFi with media form to come in. However,we must realize that there is no dark horse in the existing SocialFi products that is strong enough to drive the whole track to the public yet.
Sunny: For one thing, it presents social values in the form of tokens, which guarantees fairness of data ownership, distribution and privacy protection,and for another, this form of product and can be combined with Defi and provide a new way for monetization while weaving interpersonal networks and guaranteeing free speech. Also, it brings capital on the growth of new platforms.
Joe: Compared with Web2.0 and its inherent problems，we actually need to reduce the costs through a parallel system of finance. Our products can become more “sexier” when the costs of payment and channel are erased.
BoYan: SocialFi guarantees the freedom of expression,at the same time,it helps to build the interpersonal network for the incoming Web3.0.
Q3 How do you see the integration of the SocialFi project with NFT, games and metaverse?
BoYan: SocialFi’s integration with games, NFT, and metaverse is considered an inevitable trend in the future Web3.0.The combination with social applications also echoes the open source in the blockchain world. In turn, these areas would also enrich the SocialFi products.They are mutually empowering, which can improve the sociality, playability and communication of the product, and also open up the imagination for the SocialFi track to improve the content extension.
Joe: The current bonding state of different applications is poor, only limited to the asset layer. By building up a universal identity system and drawing a relationship map (address book), products in other fields can enjoy the services based on SocialFi products. This may realize the migration action of relationship maps and chat records, and also create a 1+1>2 experience for users. Comparatively speaking,in the era of Web3.0,people are more delighted to see the change that the data disclosure can open up one world to another. Also,after integration,the advantages of its team, funding, playability and convenience are far more satisfactory.
ZiShi:But back to reality, SocialFi products are still facing with two major paradoxes. Firstly, if their user base is not enough, technically ,the product cannot be called SocialFi.However. the current blockchain users are not that many, so it’s difficult to achieve virtual and reality both; Secondly, unlike the logic of Web2.0, most of the users in Web3.0 come with Investors’ attributes. In this case, how to balance the social needs and transaction needs and onboard Web2.0people to the new product will be the core influence. In this logic, we still need to wait for a head SocialFi product to appear.
DaiXiexie: SocialFi is still in its early days, but it doesn’t mean that onchain games are less fun. With the support of blockchain logic, their chance in playability, funding and team is much better.
Q4 How should native applications under Web3.0 compete with those traditional social media under Web2.0?
BoYan: Each of them has to found their core strengths and specific positioning. The operating logic in Web2.0 and Web3.0 were never fundamentally set over against each other.
ZiShi: Web2.0 is winning cuz they went with the flow of periodic rather than arresting it. It is difficult to cultivate new habits of 00 and 10 generations.For one thing, the number of blockchain users is not that many, it’s difficult to achieve virtual and reality both. Also,most of the users’ needs have already been satisfied in Web2.0, but the native needs to trade and make money in the Web3.0 world are not satisfied.So the current question is how to attract users and retain their needs to make a profit. And for another, how can SocialF accomplish activation and retention? Those are difficult to achieve through token, and I’m thinking what kind of products and protocol may have the potential to accomplish that myself too.
Back to the question,I think there’s no need to compete with the traditional social media giants in Web2.0.They have different user base and the logic for crypto is to make money. The important thing for us to consider is that how can we securing enough users in the outbreak period.
Q5 When would the massive outbreak of SocialFi comes? And what kind of constraints may be encountered?
Sunny: The current user base is not enough, and the SocialFi industry still has its problems，including value capture mechanism, monopoly of influencers and community conflict management. Based on development of Web2.0, we still need to wait for a tougher applications to emerge and more young users coming to the industry.
Joe: The established logic is tightly bound up with token.However,we need to consider whether it is appropriate that people’s mind are totally wrapped up in the economic system.
Cultivating user portraits, trying to figure the user hierarchy and helping our users to achieve their rights and interests are the prerequisites for SocialFi to go further.
Q6 When investing in SocialFi projects, what risks should users and investors be aware?
ZiShi: Watch out for projects that only care about personnel developing, pay attention to see how their community and operations are like and whether there is a rigorous roadmap.Try to figure the way they choose to achieve long-term value.
BoYan: Firstly,this question can be divided into two kinds of people,those who invests in the primary market and those belongs to the secondary retail investors. You need to be alert to the authenticity of the project,try to figure whether the economic model used in the project is sustainable, be wary of those projects that have good stories but difficult to achieve.If the protocol level doesn’t work well, choose the strong application type. Avoid bottom fishing racklessly in bear markets or choosing projects with very poor token liquidity.
About BOOM Talks
BOOM Talks is a serie of Space events started by the official BOOM Twitter, focusing on industry trends and hot topics, regularly inviting celebrities, pioneers and KOL from the crypto to share their views and opinions. Users who participate in each event will also have a chance to win up to 20U of our prizes!
About BOOM
BOOM is a SocialFi platform dedicated to connect Web2.0 and Web3.0. Since its launch in January, the early users has surpassed 10W and Boom has now become the most popular decentralized Crypto Lovers community in 2022.
Website | iOS APP | Android APP | Google Play APP | Twitter | Telegram | Medium
