In a world where social media popularity can fluctuate as rapidly as Bitcoin’s price, LunarCrush, a platform that aids crypto investments through tracking social media trends, has recently acquired a substantial $5 million in Series A funding. This investment round was led by innovators such as Draper Round Table, a network instituted by esteemed venture capitalist Tim Draper, and INCE Capital. Other prominent investors include Draper Associates, WWVentures, TRGC, Bitcoin Frontier Fund, Draper Goren Holm, Blockchain Founders Fund and more.
LunarCrush, having its roots in Los Angeles and established in 2018, made use of social media data on digital assets, NFTs, and stocks initially. This data was used to support users better their trading decisions, accurately pinning their move according to distinct trends.
Upcoming changes to LunarCrush’s offerings are expected next week with the launch of its beta version of the Social Search tool. This tool is unique, allowing users to expand their search from only financial products to any topic on the platform. Users would now be able to search across several social media platforms, extracting content that aligns most with their interests.
LunarCrush CEO, Joe Vezzani explained, “What you see in your feed is designed for you by someone else. We are letting people design their own algorithms by following topics across social media that matter to them the most and distilling signal from the noise.”
Though this innovative change promises an individualistic user experience, it does lead to interesting questions: will users have enough knowledge to design their algorithms? Could the popularity of a crypto asset on social media promise success in the real market? Should financial decisions be majorly influenced by social media trends?
Certainly, there are potential benefits and drawbacks to this model. For one, such tools can democratize information, disassembling the wall between financial experts and layman investors. Nevertheless, while this may empower the consumer, would such a tool potentially undermine expert advice and lead to risky decisions made based on trends rather than substantial financial analysis?
This changing landscape of crypto markets further underscores the importance of blending traditional financial wisdom with the opportunistic usage of emerging digital tools. As LunarCrush’s future unfolds, the impact of this fusion will be a key subject to observe.
Source: Coindesk
