According to BlockBeats, on October 5, CryptoQuant founder Ki Young Ju shared his insights on social media, highlighting its increasing influence on financial markets since the advent of the internet. He pointed out that social media's impact has taken on a quasi-religious nature, citing examples such as Elon Musk's Tesla, Satoshi Nakamoto's Bitcoin, and various cryptocurrency communities.
Ju emphasized the critical role of 'prophets' in driving asset prices upward. These figures, who are perceived to have reached a state of enlightenment, extend their visions of the future, fostering blind faith among their followers. This faith leads to the formation of religious-like communities with shared beliefs. The stronger the faith within these communities, the more legitimate the asset is perceived to be, even if it does not generate profit or create social value. This phenomenon is remarkable.
Investors must now be aware of social media's impact on investment decisions. When evaluating a publicly traded company or a token project, it is essential to consider whether there is an influential 'prophet' on social media and the strength of their followers' beliefs.
Companies are racing to establish a presence on social media, attempting to form communities filled with blind faith. However, not everyone can become a prophet, and most fail to attract followers. In the crypto sector, if internal efforts to expand influence fail, companies may hire external Key Opinion Leaders (KOLs) to create false beliefs. Only a few projects succeed in this endeavor.
The influence of social media on financial markets will continue to grow. As communities are composed of people, this quasi-religious aspect will deepen. Ju believes that understanding how religions operate will help in comprehending the future of financial markets.
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