BlockBeats news, on October 5, CryptoQuant founder Ki Young Ju posted on social media that "Since the invention of the Internet, the impact of social media on financial markets has become increasingly religious. Elon Musk's Tesla, Satoshi Nakamoto's Bitcoin, and various crypto communities are typical examples.
The role of religious "prophet" plays a vital role in driving asset prices up. Prophets endlessly expand their thinking about the future and are often considered to have reached a state of enlightenment, and this perceived enlightenment produces blind faith. This belief 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 profits or create social value. This is an amazing phenomenon.
Investors must now pay attention to the impact of social media on investment decisions. When evaluating a listed company or token project, it is necessary to consider whether there is an influential "prophet" on social media and how strong the faith 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 very few projects have succeeded in this regard.
The influence of social media on financial markets will continue to grow. Since communities are made up of people, this religious color will also deepen. I believe that understanding how religion works will help understand the future of financial markets. ”