In 2021 we saw the rise of Defi with the introduction of NFTs, altcoins, and the Metaverse all making headlines around the world. With this rise, we saw cryptocurrencies such as Bitcoin and Ethereum reach new highs, and altcoins impact the market we could never have imagined. At the same time, we also saw a downside to the industry.
Scams such as the recent $SQUID rug pull shined the spotlight on a clear knowledge gap within the industry, with scammers taking advantage of new investors. Many investors and crypto enthusiasts remain optimistic about the sector and DeFi’s future despite this downside. But what exactly will this future of Defi hold? For many, SocialFi could be the change we need.
What is SocialFi?
SocialFi is a new perspective of Defi, focusing on a combination of Social and Financial advancements. SocialFi aims to deliver benefits and rewards to users through the financialization and tokenization of social influence. And, this would solve one of the biggest problems we currently see in our social systems: monopolies.
Facebook dominates the industry, with Instagram and WhatsApp being two examples. YouTube dominates the market, allowing top content creators to monopolize those trying to come up. SocialFi aims to change this by empowering creators and allowing more individuals to contribute to the creator economy.
Another benefit of SocialFi is that it will create a safer barrier of entry for new users looking to get involved in the crypto space. Currently, new investors are prone to scams. With every project claiming to deliver the best results, it’s hard to know where to look. SocialFi would ensure a safe space for new investors to learn without unnecessary risk.
Although still in its early stages, SocialFi could significantly impact cryptocurrency and blockchain and how we operate socially around the world. With several new projects now looking towards this objective. Torum is an exciting new project at the forefront of this development and is building the SocialFi Metaverse of the crypto space.
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Who Is Torum?
Torum is a social media platform for cryptocurrency users. Users can share ideas, learn from one another and make new connections. The project has already reached over 180,000 users and is snowballing. Should its growth continue at this rate, it will become the most prominent cryptocurrency community globally. The team behind Torum is taking this one step further by expanding into the metaverse.
The project is backed by two large crypto businesses, Huobi Ventures and KuCoin Labs, which have praised the project for its innovative approach to Defi. Torum is now looking to take things to the next level with a dedicated team and several investments. It has already raised $1.5M in a private round from investors, including AU21 Capital, Momentum 6, Consensus Lab, Redline DAO, DFG, etc.
How Torum is revolutionizing the SocialFi crypto space
Torum is looking to tackle one of the biggest problems in the cryptocurrency industry, scams. While much of the industry has proven its legitimacy, scammers are still succeeding. Although investors can research projects in apps such as Telegraph and Reddit, scams continue to impact the industry. How can we project new investors?
Torum’s solution is a SocialFi ecosystem that new and experienced crypto investors can trust. Within this ecosystem, various needs within the community can all be met in a single place. For example, an internal NFT marketplace will empower crypto artists to sell to a community that is actively looking for their pieces.
The NFTs connect to Avatar NFTs, which will be used to unlock a new identity within the Metaverse. In addition to these benefits, Torum Finance will allow investors to participate in liquidity farming and interactive gamification. With crypto enthusiasts all in one place, blockchain projects can find their ideal target market, which will allow both them and their users to benefit. It’s a win-win scenario for all involved.
With the industry of SocialFi only getting started, there are thousands of potential applications. In the future, SocialFi may be an essential part of society, with small communities providing the opportunity for content creators to thrive.