According to ChainCatcher, CryptoQuant founder Ki Young Ju posted on a social platform that “Since the invention of the Internet, the impact of social media on the financial market has become increasingly religious. Elon Musk’s Tesla, Satoshi Nakamoto’s Bitcoin, and various crypto communities are typical examples.
The role of religious ‘prophets’ plays a crucial role in driving asset prices. Prophets, who endlessly expand their thoughts about the future, are often believed 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 faith of followers within the community, the more the asset is considered legitimate, even if it does not bring in profits or create social value. It is an amazing phenomenon.
Investors must now be mindful of the impact of social media on investment decisions. When evaluating a public company or token project, one must consider whether there is an influential "prophet" on social media and how strong the belief of its followers is.
Companies are rushing into social media, trying to form religious communities full of 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 hire opinion leaders (KOLs) externally to create false beliefs. Only a few projects have succeeded in this regard.
The influence of social media on financial markets will continue to grow. Because communities are made up of people, this religious overtone will also deepen. I believe that understanding how religion works will help us understand the future of financial markets.”
