After the first wave of excitement in Friend.Tech, a new project called TipCoin, which combines the features of X (formerly Twitter), has once again attracted attention from the Web3 world in the social field. Since its official launch on September 1st, TipCoin has quickly attracted hundreds of thousands of users to participate in tweeting and interactive comments in just a few days, spreading like a virus and quickly occupying the hot topics of Twitter.
Why has Tipcoin attracted so much attention in a short period of time? And how does the traffic behind viral marketing spread? Let’s take a look at the analysis below.
Flow transmission in the Web3 community under PVP mode
Recently, the number of stable coins in the cryptocurrency market has shown a continuous decline. Without new incremental funds injected, traders’ profits mainly rely on internal market games, which we call PVP mode. In the PVP mode, due to the lack of external funds, every short-term speculative opportunity is particularly valuable, thus becoming the focus of traders’ attention. The transmission of information is key to these opportunities. So, how is this speculative information spread and transmitted among traders?
In the cryptocurrency market, the process of information transmission forms a hierarchical structure. From the source to the end, there are significant differences between the recipients of the information and their interests.
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Gem Hunter: These players are the first recipients of the information. They are usually able to quickly capture opportunities and buy in when the project is still in its initial stage or liquidity is first deployed. Their investment amount is usually small, about 0.1-1 ETH, and when they buy in, the project’s market value is low, usually between 20,000 and 200,000 USD. Once the price stabilizes, these players will choose to exit and profit.
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CT Influencer: When the market value of a token has stabilized and shows significant growth potential, these influencers will take notice. As these tokens have certain potential, CT influencers will promote them publicly to enhance their influence in the community.
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CT Audience: These are the end recipients of the information. Most of the time, they are passive information consumers. They rely on the recommendations of the influencers and then make investment decisions based on the information they receive.
These three levels together form an information transmission and decision-making mechanism in the cryptocurrency market.
To help readers better understand, this is the tool interface commonly used by gem hunters:
The social mining algorithm of TipCoin
In addition to the 10,000 points reward obtained from the first tweet release, TipCoin also provides four ways for users to earn additional points through “daily tasks”. Unlike Epoch1, in Epoch2, points will only increase within 24 hours after the original tweet is released. There are detailed point calculation formulas for tasks such as reading tweets, liking, replying, quoting, and retweeting, which can be viewed on the official website.
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Original Tweet: The main way to earn points is by posting original tweets that include the $tip and @tipcoineth tags, with a base point multiplier of 25. Points can be further increased based on activities such as reading, liking, replying, quoting, and retweeting the tweets. A maximum of 5 such tweets can earn points per day.
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Tipped Quote: If your original tweet with the $tip and @tipcoineth tags is quoted by others, you can earn points with a base point multiplier of 10. A maximum of 10 such quotes can earn points per day, with a limit of 1 million points. However, excessive quoting may result in points being deducted, with a maximum deduction of 10,000 points.
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Tipped Reply: Replying to others’ tweets with the $tip and @tipcoineth tags can earn points with a base point multiplier of 1. A maximum of 50 such replies can earn points per day, with a total point limit of 25,000. Additionally, these replies can earn additional points based on factors such as reading and liking.
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Replied Kickbacks: When you receive replies from others, you can also earn points, but with a multiplier of 1/10 of the original points. There is no limit to the number of points that can be earned in this way per day, and these points will not be displayed on the user dashboard.
The Secret Behind TipCoin’s Success
Facing limited budget, achieving maximum exposure is undoubtedly a challenge. If I have enough funds, I can choose to sponsor Zhou Yuxuan’s F1 car or name the stadium of the Miami Heat. But the reality is that my budget is limited. So how do we solve this problem? Here I want to share a keyword: expectation.
Take tipcoin as an example, if it has issued tokens, users can calculate clearly the $TIP income they can earn by posting tweets. If this income exceeds the market price, a large number of people will flock in until the resources are exhausted; otherwise, if it is lower than the market price, tipcoin may be ignored.
And points, initially promoted by Blur, have become an effective strategy to attract users to achieve specific goals. Points mining has two major advantages: 1. It can guide users to achieve predetermined KPIs without explicitly revealing the calculation formula; 2. Although points continue to grow, the corresponding number of tokens is fixed, allowing users to engage in strategic games within a limited budget.
Creating enough expectation is the first step and the most critical step.
TipCoin Product Analysis
TipCoin’s product page is a product with strong peripheral implications, just like the pink light in a hair salon, the lewd smile of a massage parlor boss, and the second floor of a water club: the homepage of the product clearly shows a message: we have airdrops, and what do you need to do to get more airdrops, and you are suitable to receive these airdrops.
This product design, although intuitive and simple, is often overlooked by many Web3 product developers. You may ask, why is this point worth mentioning separately? The answer is: because many Web3 products do not fully understand and consider their target users. I completely understand that as developers, we always want to present every detail and function of the product to the users. However, in reality, Web3 users often pursue efficiency and do not have much patience to delve into every detail. (Usually, the details of the product you develop cannot match the user experience of web2 products) So, for developers, the key is to highlight the most important and core functions (preferably related to transactions and tokens), simplify other operations, and make the user experience smoother.
Token Economy
35% of the TIP tokens will be used for platform rewards, 5% will be allocated to the market, and 5% will be allocated to team lock-up. The remaining tokens will be allocated to three Epoch rewards. The airdrop token allocation ratio of TipCoin will be adjusted according to the different epochs participated in. In Epoch 1, 15% will be used for liquidity provision and 15% will be used for airdrops; in Epoch 2, 20% of the tokens will be used for airdrops; in Epoch 3, 5% of the tokens will be used for airdrops. It should be noted that unredeemed points at the end of the next Epoch will be destroyed.
The goal of TipCoin is to balance rewarding early users, successful product and platform launches, and expanding token emissions to achieve price appreciation. TipCoin reserves 35% of the tokens for users and locks 5% of the tokens, increasing a large portion of liquidity supply to assist issuance and price stability, as well as Epoch rewards, gradually injecting new tokens into the ecosystem, and finally using the tokens on the new platform to bring quantity and demand.
Some users have pointed out that the activities of some users on the leaderboard have been controlled. However, TipCoin does not immediately pull every user, but chooses to “internally mark” them, so that the system can have a more comprehensive understanding of robot activities and be able to handle them quickly and effectively in future Epochs. During the points redemption phase, manipulated accounts will lose a large amount of points, flowing back to the hands of truly supportive users.
Summary
Friend.Tech used the user “reputation” inherited from X (Twitter) for cold start, while Tipcoin achieved cold start through X’s traffic algorithm. Faced with the initial appearance of Tipcoin, I encountered two views: some believe that this viral cold start strategy is extremely efficient and should be adopted by more projects; while others are concerned about how long such heat can be maintained when social interaction is no longer based on real interaction but rather focused on KPI-driven point accumulation.
Personally, I tend to support and encourage this focused innovative strategy. In the Web2 field, the most profitable area is computational advertising. Take TikTok as an example, it generates approximately $10 billion in revenue annually through computational advertising. Computational advertising focuses on using machine learning models to optimize ad decisions, and this field has reached maturity after 20 years of evolution. In comparison, the social field of Web3 is still in its early stages, and its development trajectory is very similar to the early stages of computational advertising. Regardless of whether Epoch 2 of Tipcoin can be sustained, it is a meaningful social experiment.
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