Creator Coin Arbitrage Strategy

BitCloud is a social network that allows users to speculate on people through creator coins, with automatic rewards for creators. Here's the investment strategy discussed:

Core Investment Strategy

• Buy creator coins of users who are undervalued relative to their social following
• Look for people trading at low prices compared to their Twitter/Instagram following
• Example: Chuck Norris trading at $200 despite large following represents good value

Creator Reward Mechanics

• Default setting: Creators get 10% of all coins purchased
• When someone buys $1,000 worth of coins:
  • Creator gets 10% ($100 worth)
  • Buyer gets 90% ($900 worth)

Advanced Strategy for Wealthy Users

• Set creator reward percentage to 0% instead of 10%
• Benefits:
  • Encourages more people to buy your coin (lower friction)
  • Buy your own coin directly instead
  • Maintain control over your own coin value

Platform Growth Mechanism

• Pre-created profiles for top 15,000 Twitter accounts
• Creators can claim their profile by verifying Twitter
• Receive "founder rewards" upon verification
  • Example: Shaan had $60,000 worth of coins waiting
• Creates viral growth through verification incentives
  • Creators tweet to claim rewards
  • Larger following = larger rewards
  • Drives organic platform adoption

Value Proposition

• Coins tied to creator's reputation
• Price moves based on creator's public actions/success
• Future utility planned for coin holders:
  • Access to creator AMAs
  • Special privileges for large holders
  • Stakeholder meetings