Social Media Bubble: ‘Like’ Traders Revealed

Spotting the Signs of Social Media Investment Bubble: Beware of ‘Like’ Traders

In today’s monetized social media landscape, identifying online initiatives that attract excessive investor engagement has become relatively straightforward. Recognizable characteristics include “like-farms,” which employ tactics like demanding likes, posing easy questions, exploiting curiosity (“Unbelievable things happen next!“), capitalizing on schadenfreude (“Click here to witness a wardrobe malfunction!”), or leveraging emotional triggers, such as distressed children or adorable cats. Numerous websites and companies like Buzzfeed or Upworthy thrive on these behaviors.

Exercise caution when expecting rapid returns on investment in terms of social capital, fame, respect, influence, reputation, sympathy, or financial gains. Additionally, be mindful of disruptive market behaviors like trolling and other forms of derailing. Consider the influence of online platforms configured as social marketplaces that facilitate like-farming. Watch out for bandwagon effects, where bystanders join in, and the surge of “likes” or retweets that can propel certain posts, pages, images, or causes into viral phenomena, potentially signaling the onset of a bubble.

Do not underestimate the impact of what you like on a daily basis. While an individual opinion may seem inconsequential, the collective social signal sent by numerous likes holds significant power, capable of shaping people’s behaviors and opinions. Waves of public sentiment, bandwagon-jumping, media exposure, and association with the social proof of abundant likes possess immense influence. Similar to financial markets, this power exists irrespective of whether there is any substantial underlying value.

The peril of the social media bubble lies in the fact that truth may not always go viral, while viral content may not necessarily be true. If popularity becomes the sole currency of importance, online bubbles can inflict damage beyond financial markets. They have the potential to impact the trajectory of society and democracy. Let us not find ourselves caught in the midst of the bubble when it inevitably bursts.