The Pipeline Knowledge Graph

Growth and trends on crypto Twitter

5 min read

From: thepipeline_xyz

Crypto Twitter (CT) serves as a significant platform within the cryptocurrency space, acting as a “Powerhouse” for discussion, trading, and community engagement [00:00:06]. It is where many users with a “pulse on crypto Twitter” follow key figures [00:00:30].

Growth and Influx of Users

Personalities on Crypto Twitter have experienced significant growth, especially during periods of market upturn:

  • Anom’s Growth Anom’s account “blew up” starting in the last cycle, growing from approximately 3,000 followers to 100,000 followers by the end of the cycle, primarily by sharing trades [00:02:03].
  • Recent Accelerating Growth In recent months, growth has accelerated, with some accounts gaining 30,000 to 35,000 followers in a single month [00:02:33]. These are considered “bull market numbers,” indicating a rapid return of retail participants to the market [00:02:47]. This influx is notable given the significant market downturn in 2022 [00:03:16].

Dynamics and Characteristics of Crypto Twitter

Crypto Twitter exhibits unique dynamics that influence market perception and individual trading strategies:

Public Trading and Authenticity

Successful traders on CT often share their positions and updates in real-time, which builds credibility because it’s difficult to fake [00:04:53]. Publicly “calling stuff before it happens” is seen as a genuine display of insight, unlike faking screenshots or private messages [00:05:00]. This public visibility has led to successful calls on various assets like Solana, AVAX, Luna, DFK, and Axie [00:05:22].

Conviction and Bias Flipping

  • Strong Conviction Users often tweet with high conviction, which can be entertaining to observe [00:07:44].
  • Overcoming Bias A significant challenge for traders on CT is “flipping bias”—changing a market stance (e.g., from bearish to bullish) when the market shifts [00:11:26]. This is difficult because the general sentiment on the “timeline” often leans strongly in one direction [00:11:30].
  • Drowning Out Noise To navigate this, it’s advised to stick to one’s own process and not over-rely on or counter-trade sentiment from others, as it can be mentally taxing and lead to losses [00:11:46]. Journaling trades helps maintain a clear thought process, especially when emotions are involved [00:12:27].

Social Signaling and Narrative Trading

Social signaling plays a powerful role in asset pricing, sometimes causing projects to be valued far higher than their fundamental utility [00:16:16].

  • Meme Coins and “Scams” Examples include Hex, which was once the third-largest by market cap despite not being listed on major sites due to its perceived “scam” nature [00:16:32]. The CEO’s ability to “convince people that his coin was worth a lot” through social means demonstrates this [00:16:57]. The speculative premium on altcoins due to how they trade is a significant factor [00:17:35].
  • Distinguishing Value The intertwining of price action and perceived value makes it challenging to distinguish between legitimate projects (like Solana with its fundamental value) and those purely driven by hype or social influence [00:18:00]. Price action itself is seen as the “best marketing tool” for crypto [00:18:45].

”Normie Perception” and Mass Adoption

A significant challenge for crypto is overcoming the “normie perception” that equates it with scams, especially for concepts like NFTs [00:36:25].

  • Conveying Value There’s a need for more voices in crypto who can effectively communicate its value to a broader, non-technical audience [00:37:02].
  • Trojan Horse Strategy Projects like Parallel (a card game) and Drip House (a free NFT platform) are employing “Trojan horse” strategies by offering appealing products that don’t overtly require crypto knowledge, potentially leading users to discover crypto’s benefits organically [00:38:42].
  • Top Signals vs. Mass Adoption A key dilemma on CT is distinguishing between “top signals” (indicators of a market peak) and genuine mass adoption [00:46:27]. If this cycle brings true product-market fit and applications used daily by retail consumers, then broad public support for crypto might be a confirmation of success rather than a sign of a market top [00:44:50]. This highlights the inherent tension for long-term crypto believers: do they sell when their vision of mass adoption finally starts to materialize? [00:46:52]

Getting Involved in Crypto Safely

For new users without a finance or software engineering background, several steps are recommended to engage safely with crypto:

  1. Get a Hardware Wallet This is the most secure way to store crypto [00:54:50]. Trezor and Lattice are recommended over Ledger due to recent concerns [00:54:54].
  2. Get Active on Crypto Twitter Despite the volume of information, CT is a valuable resource [00:55:25].
  3. Form a Group Engage with a group of friends interested in crypto. This makes navigating complex information easier and allows for bouncing ideas and questions off each other [00:55:32].
  4. Set up an Exchange Account Platforms like Coinbase offer tutorials for new users [00:54:36].
  5. Start Using Applications Begin by experimenting with small amounts of crypto on applications. Examples include:
  6. Consume Educational Content Podcasts, such as this one or those from Blockworks, offer valuable insights directly from founders and experts [00:56:58].

The rise of the “internet native” generation and increased online presence due to remote work also contribute to a growing environment for crypto adoption, making it easier for people to explore and engage with the space [00:51:36].

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