002: The Rise Of OTC

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It is the early days of BitClout but some feel it is like owning a boat. Always putting money in and never getting any money out. There were others that simply didn’t like dealing with the high network fees and wanted to trade with their peers… 

...and the BitClout OTC markets were born!


1. What's an OTC market and how is it different from an exchange?
OTC stands for Over-the-Counter and is a type of market or decentralized exchange where transactions happen peer-to-peer(P2P). Buyers and sellers match their own orders and there is no “auction” price like a centralized exchange. The OTC does help facilitate and I will discuss the following three projects in detail below: 

  • @p2p - t he first really P2P exchange. $BitClout 🔁 BUSD, fee 2% ($2 min).
  • @bitswap - Unisw ap for bitclout 🦄 

2. The vision for BitClout has been made public!
The full document written by @diamondhands can be viewed here [Link]. To summarize, Bitclout was founded with the creator in mind and a need to monetize their audiences (no surprise here). Centralized social media platforms have problems, a big one being the shutout of access to third-party developers. That is why building BitClout on a public blockchain was important and now anyone can run a “node” to provide custom feed or window into BitClout.

Let's Go Deeper

OTC markets emerge but is this the off ramp everyone expects?
There is no question that these OTC projects are a very welcomed development. But as with most early projects there is still a higher level of friction to use than most would like. Because the current method of selling is by trading with another party, no $BitClout gets burned so this could be a near-term positve. But the prices are trading at at a significant discount to the actual price of $BitClout.

Large discounts are not uncommon for OTCs and the amount of discount generally decreases as more buyers/sellers participate. But many are still holding out for the ability to easily sell at the actual $BitClout price. Some have even suggested the need for easier buying, like charging it on a credit card. But for now, let's discuss the OTC projects.

Technology Adoption Curve

BitClout P2P beta

I am starting with this one because I think it is currently the best option and has a nice to use interface. On the surface it is simple - add an offer to buy/sell or commit to a currently listed offer.

The complexity is that you need to use BUSD BEP20. So for Binance.US users(anyone in the USA) this presents a challenge as there is not support for the BEP20 network. The solution is TrustWallet which will let you convert BNB BEP2 --> BNB BEP20 --> BUSD BEP20. This definitely made getting setup to transact here a much bigger ordeal than expected.

The good news is I finally got the right currency and completed multiple buys both via the "online" and "offiline" functionality. Everything works well with only some minor notifications and validation messages missing.

One of the biggest pros is the transparency of transaction history being listed right below the offers for all to easily view. One concern is that the project founders/operators are not disclosed. However I was able to communicate with the project account and they were the ones that turned me on to the TrustWallet solution.

This project could be the one with the most potential. @sigil is leading the charge seems to be very forward thinking and the team released this whitepaper that details where things are and a bit of the future roadmap.

Not a lot else to say on this at the moment. I was hoping to be onboarded by the release of this edition but there seems to have been some technical setbacks. I am still very optomistic and hope to provide an update here very soon.

This project was created and moved under @BitcloutHoldings. There has been some controversy around the intentions of this account and some of the people behind it but I do not have enough info to comment. I would be happy to interview any knowledgeable parties to go deeper for next time.

Functionality - In short my two transactions did not work and support was quite slow. That being said, I did eventually get a full refund for the Bitcoin I had sent which is greatly appreciated.

I do like how the visual style is very similar to the main BitClout.com site and the fact that you can use bitcoin. But due to high BTC network fees this is still not the optimal solution.

Teen Social Media Preferences

@diamond hands comes through with the vision.
Transparency and clarity are a welcomed addition and I think this is a big step in the right direction. Many early critics would have been silenced much sooner had this document been available earlier.

But we have it now and I think it covers all the bases(for now - obiously need to leave openness for things to evolve). The main theme is that decentralization is a better way to give power to the people and not the big corporations(other social networks).

What power to the people? First, it is money-native which enables direct monetization of audiences or projects. Another one of the key elements is equalizing the data advantages by allowing all access to the same public blockchain. And on that note..

Nodes - A node is like a window into the blockchain and allows developers to present a new view or application using the underlying publc blockchain data. For example, change the algorithms that determine the ranking of certain posts or how the comments are displayed. Or better yet, enable keyword or hastag search(this is a bigger topic for another time).

But nodes are just a starting point. Who thinks the following is a valid request?

We need a way to keep track of all the feature requests.

There are now many feature requests that can be serviced by other buiilders/makers outside of the core BitClout dev team.

Want a new feature? Start tagging @CloutRequest and they will soon be aggregated and tallied.

That’s it folks.

Potential topics for next week:

  • Deep dive into some of the most important applications being built on top of BitClout
  • The need for hastag or keyword searchability
  • Mystery accounts
  • Mention @CloutTrends on BitClout with more suggestions!

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