Report Reveals Market’s Pain In First Half Of 2022. Some Crypto Ecosystems Continue To Thrive

The first half of 2022 was painful for the crypto market. This is mainly because of the events during the second quarter, such as Terra’s collapse and Three Arrows Capital’s insolvency. A recent report produced by the popular crypto price-tracking site Coin Gecko has examined precisely what happened during this chaotic second quarter and how it could affect cryptocurrency in the remaining half of this year. 

The following is some background about this report, summarizing what it says in simple terms and what it could mean for the crypto market going forward. 

The report begins with a note from Coin Geckos founders where they talked about how crypto lost more than half of its market cap during Q2 and how this was due to a combination of macro factors and Terra’s collapse. The founders also mention Three Arrows Capital and how its insolvency took down crypto platforms exposed to it, like Voyager Digital, and noted the gradual decline in the NFT market.

On a more positive note, the founders point out that many crypto ecosystems continue to thrive, despite the bear market. They note that most of the leverage has been flushed out by the recent crashes and that many crypto companies and projects, including Coin Gecko, continue to operate as usual. 

The Market Landscape

The first part of the report provides an overview of the crypto market. As mentioned in the report’s introduction, crypto lost nearly 56% of its market cap during the second quarter of this year and was 70% down from its November highs. Interestingly, trading volume during the second quarter was essentially the same as the first quarter, suggesting the same pool of traders and investors has stuck around since that time. 

The authors then turn to the market dominance of the top 30 cryptocurrencies. Market dominance refers to how much of the total market cap comes from a single cryptocurrency. BTC’s dominance remains the same, while Ethereum fell significantly in June. 

ETH’s decline may have something to do with the news that Ethereum developers had delayed Ethereum's “difficulty bomb,” which was interpreted by ETH investors as a sign that Ethereum’s merge to proof of stake was also delayed.

Another noteworthy thing in the report was that Bitfinex’s exchange token, Leo, was the only cryptocurrency that didn't end up in the red during the second quarter of this year. Some exchange tokens such as Binance have seen exponential growth, particularly in the last bull market. 

Because of token utility and perks that exchanges can offer traders, and because they use trading fees to buy back and burn their native tokens, often causing their prices to rise artificially, they’re holding their own in the current bear market. 

In the matter of the market cap of stablecoins, nearly $39 billion were lost as a result of Terra’s collapse. Tether’s USDT lost 20% of its market cap, with circle’s USDC picking up most of the slack. The report suggests that this is evidence that investors were cashing out of crypto completely during Q2. 

The analysts found that the top 30 cryptocurrencies by market cap strongly correlate to the S&P 500 stock index, stating that the correlation was high at 0.92, which increased from 0.72 in Q1 of 2021. They highlight that crypto assets’ correlation with traditional markets is not surprising given the perceived risky nature and suggest that stocks were the primary drivers of crypto prices in Q2. 

The authors provide an infographic of a timeline of the significant events in crypto during the second quarter of this year and include many important milestones for crypto. Such as Solana NFT launch, STEPN banned in China, Harmony Bridge hack, Grayscale’s ETF application denied by the SEC, Coinbase added to Fortune 500, and so on. 

Bitcoin Analysis

The second part of the report provides an analysis of Bitcoin that shows how BTC briefly fell below its previous bull market top of 20K in June. It recorded nine consecutive weeks of being in the red. Notably, the broader equity market also fell at the same time, which dragged Bitcoin along with it. 

Meanwhile, Bitcoin's hash rate only continues to climb and even managed to set an all-time high on June 8th of this year, despite the downward trend. For those who don't know, Bitcoin’s hash rate measures how much computing power is connected to the Bitcoin blockchain. 

Bitcoin vs. Major Asset Classes

When comparing BTC to other major assets, the authors found that the only ones that saw any gains were oil and the US dollar. In comparison to the Q2 of 2021 return of oil at 22% and USD at -1% rose by 7% during Q2. The possible reasons are the current constricted oil supply and rising interest rates. It might also have something to do with the US dollar being backed by oil.

Interestingly, Bitcoin has simulated the behavior of US equities dipping in unison whenever the Federal Reserve announced a rate hike. The report states that the correlation between Bitcoin and other equities has been on an upward trend as the year progresses. Whether this trend will capitulate as we enter a recession has yet to be determined.

Ethereum Analysis

The third part of the report analyzes Ethereum and starts with an even scarier chart that shows how ETH fell by nearly 70% during Q2. The authors attribute this crash to Lido finance’s staked ETH token, notably its use in Terra’s now-defunct anchor protocol. Also, its use by alien crypto platforms like Celsius and its exposure to failed hedge funds, like Three Arrows Capital. 

Next, the authors provide an updated timeline for Ethereum, transitioning from proof of work to proof of stake, which is already a bit outdated but puts the merge in Q3 this year, which is technically correct. 

Interestingly, the authors found that the amount of ETH staked on Ethereum’s Beacon chain peaked at around 11% of ETH's total Supply. The authors also note that Lido Finance remains ETH's most significant single staker at over 32%. Then the authors show how much lido Finance’s staked ETH token deviated from its peg relative to ETH. But it's important to note that the peg was quickly restored after Ethereum developers confirmed a tentative date for the merge. 

The Aftermath Of Terra’s Collapse

The fourth part of the report provides some perspective on Terra’s collapse. It starts with UST’s disastrous de-pegging from $1 to $0. It had a $1.8 billion market cap at its peak and fell to a mere $807 million at the end of June. The de-pegging event resulted in a 99% drop in value, with UST hitting lows of $0.007 since rebounding to $0.05.  

The report referenced Jump Crypto, a crypto trading and VC firm heavily involved in the Terra ecosystem and rumored to have lost a lot of money defending UST’s peg. 

The UST de-pegging had a domino effect causing LUNA’s painful implosion from $120 down to zero. The authors also note that LUNA’s supply increased by a whopping 1.9 million% before Terra’s validators turned off the mint and burn mechanism.  

The report shows a detailed timeline of Terra’s collapse, but interestingly, it doesn’t mention the alleged attack on the 4pool on Curve Finance that occurred after the Terra team withdrew UST liquidity, the exact timing of which was not publicly known. 

Investigations by on-chain analytics platforms such as Chain Analysis suggest that this alleged attack caused UST's initial de-pegging. This is something that each subsequent investigation found was exacerbated by Celsius withdrawing massive amounts of UST from the Anchor Protocol out of caution. 

The authors of this crypto report seem to blame Terra’s collapse on the broader crypto market conditions, which also played a role. 

More Domino Effects 

The report displays an excellent infographic about the second-order effects of Terra’s collapse. On the left side, you have all the institutions which invested in Terra, including Jump Crypto. On the top left are the crypto projects and platforms exposed to Terra, such as Celsius. And on the bottom left are all the different stablecoins that were de-pegged. 

The right side shows Three Arrows Capital which was, of course, exposed to Terra, and on the top are all the different crypto projects and platforms exposed to 3AC. On the bottom right, you have all the crypto companies exposed to 3AC. The authors then provide more details about how Celsius, BlockFi, and Voyager Digital were affected by Terra's collapse and 3AC’s insolvency. 

Defi Analysis

The fifth part of the report analyzes the decentralized finance ecosystem. It starts with another unsurprising chart showing how the total Defi market cap fell by nearly 75% during the second quarter of this year, a crash mainly caused by Terra’s collapse. 

However, they don’t state which cryptos they count as part of their Defi market cap measure, but the silver lining to this gloomy statistic is that Defi managed to retain most of its users, with a decline of only a third. It stated there were multiple instances in Q2 where the need for Defi truly shined. 

What's fascinating is that the authors found that users flocked to decentralized exchanges when centralized exchanges were having issues with LUNA and UST. And users flocked to Defi protocols after Celsius paused withdrawals. In both events, where centralized entities failed, users have converged to enjoy Defi’s permissionless nature. 

They then reveal the different Defi categories, their share of the Defi market, and how much they dropped during Q2. Unfortunately, the authors don't provide specifics about individual Defi projects. The main takeaway seems to be that DEX's are the most significant slice of the Defi pie at 44%. 

Non-Fungible Tokens (NFTs) Analysis 

The sixth part of the report provides an analysis of the NFT ecosystem, and it starts by shedding the spotlight on the massive decline in NFT trading volume since the start of the year.

The authors note that Solana, the latest contender to challenge Ethereum for the NFT crown, and BNB are becoming popular NFT chains because of STEPN; however, China’s ban on STEPN may put a dent into BNB’s numbers. 

The authors found that even though OpenSea is still the biggest NFT marketplace by trading volume, its dominance is declining due to new competitors like Magic Eden, an NFT marketplace on Solana. 

Some would argue that OpenSea’s decline is less due to competition and more due to the platform's controversial actions, such as freezing NFTs and blocking users in sanctioned countries. 

Regarding NFT trends, the authors believe that NFT investors are moving away from move-to-earn and silly NFTs with no utility and moving towards NFT profile pictures and NFTs that are actual art like those found on art blocks. 

This part of the report concludes by focusing on Solana's NFT ecosystem stating that OpenSea and Magic Eden have forged a gateway into the Solana ecosystem. They noted that despite the NFT market’s decline due to bearish macroeconomic conditions, Solana has been chipping away at Ethereum’s NFT Market share. 

Crypto Exchanges In A Sweet Spot

The seventh part of the report provides an analysis of cryptocurrency exchanges. It starts with a surprising statistic: trading volumes on centralized and decentralized exchanges only fell by 11% during Q2. The authors note that centralized exchanges are beginning to increase their dominance despite all the risks associated with centralized crypto platforms. 

This could be because traders and investors are using centralized exchanges to cash out. Alternatively, this increase in dominance could be coming from the fact that some exchanges like Binance recently slashed trading fees, which would explain why Binance's dominance increased significantly during Q2. 

FTX's dominance also doubled during this period, but the authors note that “no one can compete with Binance as they have grown their market share to capture almost 50% of the entire market.” 

By contrast, OKX and Crypto.com’s dominance decreased by 50% each. The authors note that Uniswap dominates the DEX market accounting for 60% of total DEX trading volume. They also note that Curve Finance’s trading volume increased significantly during Q2, likely due to both collapsed USTC pools and the flight to stablecoins. Curve Finance is a stablecoin DEX. 

Also, DEXs on Solana and BNB have increased or maintained their market share, signifying actual market activity on chains other than Ethereum. 

Traders’ Shy Away From Speculation

The authors examine derivatives such as Futures Trading, which involves speculating on the future price of a particular coin or token, often with leverage, in other words, debt. They look at funding rates which is how much money traders put down to cover their long or short positions. 

Interestingly, they note that crypto's recent choppy price action has put traders off from speculation, leading to more conservative stances on Bitcoin's direction, which is good news for crypto market volatility. 

The authors end the report by examining the assets under management for Grayscale’s Bitcoin Trust and the Proshares Bitcoin Futures ETF, which was approved in October last year. 

The authors note that the assets under management for both institutional investment vehicles collapsed by more than 50% alongside BTC’s price, which isn't surprising. They also note that the GBTC discount fell below 30% after the SEC rejected Grayscale’s Spot Bitcoin ETF application. 

What Does This Mean For Crypto?

So the big question is, what do the findings of this report mean for the crypto market? If cryptos' current price action didn't make it clear enough, the massive purge we saw in Q2 has set the stage for a severe recovery rally, which we’re in, arguably. 

However, it's only a matter of time before the markets realize that all the macro factors which caused the recent crypto crashes haven't been resolved, and this could take crypto to new lows. 

You could argue that crypto hasn't seen peak capitulation, not just because many institutional investors like Kevin O'Leary believe that we haven't seen total panic yet. The millionaire investor says, “crypto markets need to hit total panic before revival.”

O'Leary thinks that the market bottom will be marked by “total panic,” at which point weak companies with “idiot managers” will be weeded out, and the industry can continue to grow. He added,

“It’s unfortunate that these companies have gone to zero, but you end up with much stronger species.”

It’s also indicated in the report that although crypto prices have taken a beating, the number of daily defi users has remained relatively stable by comparison. Also, trading volumes have barely budged, and Bitcoin’s hash rate continued to climb even while BTC’s price crashed. 

If what we saw over the last half year had indeed been the market bottom, then it stands to reason that all these metrics would have fallen by much more. For example, the Bitcoin hash rate fell by nearly 50% in previous bear markets but was only 10% off the most recent hash rate highs. 

Not only that, but consider that only two entities exposed to Terra and Three Arrows Capital have collapsed. As the infographic shows, there were nearly two dozen exposed entities, and we're still getting news about some of these running into serious trouble. And that’s apart from all the cryptos that 3AC could soon sell. 

If you're wondering when the current recovery rally could end, some posit mid to late September, when Ethereum’s merge is expected to occur. It’s also when the Federal Reserve will return from its summer holiday with what's likely to be a fresh rate hike to fight inflation. 

Cointelegraph points out that the current ETH rally could be a bull trap with the macroeconomic clouds darkening. A bull trap indicates that a declining trend in a crypto asset has reversed and is heading upward when it will actually continue downward.

With Autumn nearing in many parts of the world, people could start to face skyrocketing energy costs in anticipation of oil and gas shortages over the winter, something that would almost certainly damage assets across the board, such as oil, gas, and the US dollar. 

It’s still risky days ahead given the macroeconomic factors at play, so hang on to your hats and brave the storm. As the saying goes, “No pain, No gain.” The one constant is change, and I believe all these factors are contributing to a more robust, healthier cryptocurrency industry where genuine projects and communities will flourish. 

This information is provided for informational purposes only. Nothing herein shall be construed as financial, legal, or tax advice.

Tim Moseley

Analysts Predict Crypto To Go Mainstream

As cryptocurrencies continue to attract the attention of regulators and investors, some analysts have suggested that Bitcoin could become legal tender in many countries very soon. This proposal argues that Bitcoin is similar to traditional currencies such as US dollars or Euros. So it should be possible to enter the mainstream market as a means of payment and a store of value in the same way paper money does now.

However, several significant differences between the two types of assets make this an extremely complicated task, not least because they are subject to entirely different sets of rules (and their associated risks). In the UK and US, where Bitcoin is a form of payment, the government has been more cautious about regulating it than most other jurisdictions.

Anthony Scaramucci, the founder of Skybridge Capital, expects more countries to adopt bitcoin alongside national and international currencies.

He said:

"I think Bitcoin will be used by many Latin American countries as legal tender over time, not just El Salvador, but other countries,"

El Salvador introduced bitcoin as legal tender alongside the US dollar last September. In January, El Salvador's President Nayib Bukele predicted that two more countries would adopt Bitcoin as the legal tender this year, Bitcoin.com reported. Devere Group CEO Nigel Green indicated that three countries would adopt bitcoin as legal tender this year in January.

Meanwhile, Alex Hoeptner, CEO of crypto derivatives trading platform Bitmex, said last October that five countries would accept bitcoin as legal tender by the end of 2022.

Image source: Reuters.com

Scaramucci also believes that Bitcoin could reach $500,000 per coin in the long run, according to Bitcoin.com. In addition, he expects that by the end of 2025, there will be more than 1 billion wallets containing Bitcoin, and the number of users will reach 250 to 3 billion in the next decade.

"If it gets there, then I think the maturing asset could be a conversation about whether it acts as an inflation hedge," he said.

A Brighter Future Awaits Cryptocurrency

The digital currency landscape is changing, according to a new research paper from Economist Impact commissioned by Crypto.com. The Economist Impact examines how much consumers trust digital payments and what barriers exist to digitalizing essential monetary functions.

Comparing consumer attitudes to similar surveys in 2020 and 2021, they found that cryptocurrencies and central bank digital currencies (CBDCs) are now at the crossroads of credit cards and payment apps.

Economist Impact shared its findings on July 6, 2022, in a PDF file titled Digimentality 2022 – Fear and Favoring of Digital Currency. They surveyed 3,000 people, half of whom came from developed economies such as the United States and the United Kingdom, and the other half from developing countries such as Brazil and the Philippines.

14% prefer CBDC, a significant increase from 4% in 2021. Interestingly, 37% of consumers expect their government or central bank to make cryptocurrencies legal tender within the next three years, and about one-third of consumers expect CBDC adoption.

Notably, more than 60 central banks are at various stages of CBDC development. China and Sweden have already launched live pilots, according to the 2021 CBDC Global Index by professional services firm PwC.

Skepticism Amidst the Unstable Market and Looming Recession

There is a great deal of skepticism about the future of cryptocurrencies amidst a bear market and looming recession. Some believe that cryptos are nothing more than an overvalued fancy that will eventually crash. In contrast, others remain convinced that they have the potential to revolutionize how we pay for goods and services. However, regardless of people’s individual opinions on cryptocurrency’s long-term prospects, it remains clear that this technology has captured the attention of many investors and enthusiasts across the globe.

In the current state of the market, there is a lot of speculation and few true believers. As a result, the price of most cryptos is in a downward trend, and this will likely continue into the future. Meanwhile, the economy is heading towards a significant recession, likely dampening interest in digital currencies even more.

In the long term, crypto may eventually succeed for several reasons, but it will happen much slower than many belief. First of all, even if the value of the cryptocurrency is rising fast, several factors limit its real value in the market. The value of Bitcoin depends on how many people use it as a currency.

The number of exchanges is limited, and they have to be closed down or bankrupted by regulators; governments can block access to their country, as has happened with China and Russia. Finally, the high volatility of the crypto market means that investors need to accept huge losses or gains; this could be enough to turn off potential customers.

Acceptance of Digital Money Despite Setbacks

Digital money is seen as a more secure and efficient way to conduct transactions. Consumers feel confident in using digital money because it eliminates the need for physical currency, which can be lost or stolen. Additionally, consumers believe digital currencies are protected from fraud and malicious activities. Although the current bear market may have impacted consumer confidence in digital currencies, this does not appear to have dampened their enthusiasm for them overall.

Soon, blockchain technology will be widely adopted by businesses of all sizes. They will increasingly rely on smart contracts to automate and streamline business processes such as: fulfilling customer orders and ensuring the timely delivery of products and services. It’s a significant development for the financial industry, which has been slow in adopting new technologies due to the complexity of legacy systems and the risk of disruption to existing revenue streams should the wrong changes occur during integration with new methods. Blockchain-based solutions will accelerate the adoption of new technologies across other industries, including the healthcare and insurance sectors and supply chain management.

In conclusion, the adoption of cryptocurrencies will continue to grow, and we expect to see more mainstream companies adopting blockchain solutions and services. This is a trend that will accelerate over the next few years as more industries adopt cryptocurrency-based technology for their operations and products, and more merchants accept cryptocurrencies on their websites and in stores using mobile apps or point-of-sale systems.

Tim Moseley

What’s Wrong With News And Social Media Today? 

A democratic society values a free-flowing media ecosystem. A healthy media ecosystem is one of the characteristics of a democratic society. Mass media outlets such as newspapers and cable TV networks were prominent in the past. Today, the internet and social media platforms allow for greater communication across society. 

Journalism, investigative correspondents, and even freelance writers are essential to that ecosystem. High-quality reporting revealing brutal truths and users' scope and exposure on social media to either create or access information are forces that can drive genuine societal change. And even keep the power structures in check. 

Despite the positive aspects mentioned above, harmful practices and negative external forces related to the media ecosystem often eclipse them. These issues are usually easy to recognize once they’re identified. Therefore, it is important to acknowledge them and spread awareness about their potential risks. 

Doing so will help you make informed decisions about how you use media and how it can impact your life and the lives of others. The following are a few issues pervasive in many digital news sites, forums, and social media platforms. 

Image source: VisualCapitalist

Implicit Bias vs. Explicit Bias
An explicit bias in media has two types: explicit and implicit. It is possible for publishers with explicit biases to control the framing of stories in their publications by overtly dictating the types of stories that are covered. They push their agenda by using narrative fallacies or false balance. 

Implicit bias refers to unintentional filtering or skewing of information. This can occur by turning a blind eye to specific topics or issues because they would tarnish an advertiser's image. These are known as no-fly zones, and because the news industry is financially troubled, these zones are becoming increasingly dangerous. 

Difference between Misinformation and Disinformation
Inaccurate information is known as either misinformation or disinformation. While misinformation is unintentionally disseminated due to a lack of knowledge or truth on the topic, disinformation is purposely designed to mislead people. For example, a deepfake image, video, fake news story, or concept is considered disinformation. 

The term 'fake news' is frequently used to describe poorly written news content or inaccurate news reporting, as well as conspiracy theories and poorly written or incorrect tweets by politicians. Fake news might refer more broadly to information that an individual disagrees with.

Context Stripping
Through social media, stories are shared widely by many participants, and the most compelling framing usually wins out. More often than not, the truncated, provocative posts spread the furthest. The process of stripping context away from an idea may distort its meaning.

Sharing video clips on social platforms is a perfect example of this context-stripping process. Despite the absence of context, much discussion occurs around the video, especially if it’s controversial or shocking. As a result, viewers are unintentionally encouraged to stereotype the individuals in the video and to bring their own preconceived notions to the discussion table, helping fill the gaps. 

Cherry Picking 
Media contributors search for attention-grabbing story angles to make their point in an article. This may result in cherry-picking information and ideas. Because the content is usually accurate, it makes sense on the surface, but it is missing critical context. 

So cherrypicking can be questionable and compromising. It is tempting to create simplistic narratives that are compelling such as good-vs-evil, but real-world situations are often much more complicated than they appear. 

Desperate Times Call For Desperate Measures
Journalism is experiencing difficult times. Newsrooms are working with less staff and budgets, and 'churnalism' is one outcome. This term describes the act of publishing articles directly from wire services and PR releases. Even if it isn't widely known, 'churnalism' replaces more rigorous reporting. It is also an avenue for advertising and propaganda and harder to recognize as news. 

Image source: VisualCapitalist

Paywalls
The drive to generate revenue is leading to other issues as well. Quality content is increasingly being restricted to subscribers only, otherwise called paywalls. This has resulted in a two-class system, with subscribers receiving in-depth, well-researched news and everyone else having access to trivial or sensationalized content only. 

It’s not only about people with limited incomes; young people are also widely included. The average age of a paid news subscriber is 50 years old, raising concerns about the future of the subscription business model. 

Advertisement Clutter
Desperate times have led to desperate measures for advertising-reliant outlets. User experience has taken a backseat to ad impressions, with ad clutter (e.g., auto-play videos, pop-ups, and prompts) constantly interrupting content. One or two ads on a web page are manageable, but when ads overrun the site, it's distracting and disorienting. 

Surveillance Capitalism
In surveillance capitalism, organizations collect large amounts of data about their customers, employees, and other groups that are viewed as valuable sources of information. This information can be used for various purposes, such as generating revenue by selling data or predicting consumer behavior and targeting them with highly personalized advertising campaigns to increase their profits.

Some organizations capture and profit from individual information utilizing browser fingerprinting. When you visit certain websites, third-party companies scan your device and browser settings to track you online. Despite all the opt-in privacy prompts, these third-party trackers can still watch your every move digitally. Most people are not aware of this process.
 
Deplatforming
Many individuals and communities have been banned from social and publishing platforms for various reasons. While harassment and violence, fake accounts, and bots are obvious reasons to remove the offenders’ accounts, many would argue the rules are inconsistently enforced. Users are falling victim to being suspended or deleted from a platform for having a different point of view than the mediators of the platform. 

While we all are responsible for our online behavior as individuals, platform owners must also be careful to preserve the value of their platforms by avoiding over-zealous enforcement tactics that could lead to deplatforming. Invariably this causes irrefutable damage to the individual or company with a loss of followers and content. 

In many cases, this behavior from specific platforms is seen as a structural bias and agenda-setting from the top down by placing importance on selected topics and is very quick to censor legitimate political discourse or other forms of honest expression. A problem that seems ingrained with legacy social media and a battle we can’t win. 

Image source: VisualCapitalist

Argument Culture
It’s ultimately deviating to an adversarial approach when encountering people with an opposing worldview. Two examples of this are Twitter flame wars and broadcasts where hyperpartisan critics argue. While these are fun for some people, these activities do not require critical thinking or problem solving and are not helpful for the overall health of our society. 

A flame war is created when multiple users engage in inflammatory responses to an original post, sometimes flamebait. Flame wars often draw in many users, including those trying to defuse the flame war, and can quickly become a mass flame war that overshadows regular forum discussion.

When engaging in argument culture, people will often cherry-pick facts to strengthen their argument, ignore facts that weaken their argument and dismiss facts that reinforce the opposing argument. This approach to facts is often referred to as post-factual. Similarly, people often use hyperbolic language when arguing with others.

Brigading & Social Bots
Social media companies can be powerful enablers and disrupters where users can communicate in new and meaningful ways to help foster community engagement. On the other hand, they can also pose some unique challenges. They are driven by algorithms that privilege engagement with certain kinds of content over others. 

There are autonomous or human-run accounts on certain social media platforms that manipulate discussions and boost specific messages. This alters the tone of online discourse and artificially inflates the spread of messages. These accounts often promote particular agendas, benefit specific groups, or spread misinformation. This type of social media manipulation is referred to as brigading.

Some websites use bots to delete specific comments that they feel do not fit into the narrative of their website and promote what they consider “positive” comments instead. The potential consequences of using bots to promote or suppress specific comments will negatively impact the website and be perceived as one with an agenda that does not allow open discussion. 

Who Can You Trust? 
The issues mentioned above have led to a significant decline in confidence and trust across the various media outlets. A study of news media perception from 40 nations revealed that trust varied widely around the world, with European media trusted the most. Western Europeans trusted their media more than those in other parts of the world, and the Finnish were the most trusting, with 65%. The United States and Slovakia scored near the bottom regarding how much consumers trusted their news media at 26%.

The source is one factor that plays a significant role in whether or not an individual trusts news. On a global level, social media was the least trusted news medium, with Europe and North America leading this sentiment. A survey of U.S. adults found that most news on social media was regarded as biased.

Young people worldwide find it difficult to rely on mass media due to its current climate of polarizing political events and fake news. Older generations also share this viewpoint, and one of the top reasons for avoiding news was the inability to rely on its truthfulness.

Alternative Conservative Platforms Stand Up
Participants who lack trust in these disingenuous and agenda-driven platforms or feel their voice is not heard are migrating to other websites where they can be heard. More alternative media are popping up, Conservative-based, bi-partisan, and some are even non-partisan, with their only agenda being freedom of speech, liberty, and sovereignty. 

Conservatives are expanding their media outlets, aggressively building a conservative ecosystem with their own apps, cryptocurrencies, social media, and publishing houses. It includes Trump’s Truth Social and Gettr, launched by ex-Trump aide Jason Miller, with Rumble, the conservative alternative to YouTube, driving the news.

It is their effort to counter the perceived escalating liberal internet and media institutions and stand up against the developing cancel culture and censorship rife in legacy media. That is very commendable; however, it may well be perceived as still having a right-wing agenda that has the potential to stifle the platform’s ability to proliferate. 

An Alternative To The Alternative
Where can the people go who have no agenda, are critical thinkers, and have a completely unbiased worldview? People with an entrepreneurial spirit and a “live and let live” attitude that can rise above the injustices, evil trickery, and pettiness of the world. 

Today, the Markethive Social Market Broadcasting Network is growing in prominence as the ecosystem for entrepreneurs with a non-adversarial, bipartisan free speech ethic and a collaborative culture. It is a system of all things media, including a video platform and news broadcasting. It is a culmination of several distinct mechanisms that will harmonize, delivering the resources we need for everything we do online in a decentralized sovereign environment. 

Markethive Media has embraced blockchain technology and cryptocurrency, building an ecosystem that belongs to “we the people,” eliminating many of the issues plagued by media outlets today. With its meritocratic culture, dynamic social media interface, and growing community, Markethive is enhancing and bringing the platform into the future internet with new technology and interfaces, but still in keeping with the human touch.

There is no simple solution to the current problems facing news and social media. However, suppose we are more media literate and aware of what’s happening. In that case, we are better equipped to circumvent or even help fix these broken systems by encouraging honesty and transparency in communication channels that bond society, given that these mediums have become the primary source of information and interaction in the current dystopian climate.  

Reference
Visual Capitalist

Tim Moseley