Beauty premium is a concept that's mostly related to the preference or bias that's given to individuals with a good look over their counterparts. It's the reason why good-looking individuals experience higher chances of getting a job over their less attractive counterparts. It's not just applicable to the job sector but also applies to the crypto space.
Some crypto enjoys beauty premium based on market sentiment rather than it intrinsic value. For instance, a crypto with strong community, large number of followers, good marketing strategy, high visibility and that's well branded with appealing user interface can easily attract investors and influence investment decision even when it's a possible scam project.
A crypto can also enjoy beauty premium from influencers who if they are able to back it up can easily get her followers to invest into it, and can cause bubbles that's driven by hypes leading to increased interest and investment regardless of the actual utility or value of the asset.
We've seen how dogecoin that initially came as a joke gained significant after Elon musk came into the equation causing it to gain value even though it lacked unique technological advantages. Same happened for tap swap that's currently enjoying the beauty premium of the Solana blockchain and is getting all hyped up.
The beauty premium is a strategy that works in terms of branding your project in a manner that gives it an appealing reputation but that doesn't make those project feasible. Regardless of how well branded a site is or which famous person it's linked with, don't always trust it 100%. It could be Beauty and well appealing but still end up being a scam project.
Some crypto enjoys beauty premium based on market sentiment rather than it intrinsic value. For instance, a crypto with strong community, large number of followers, good marketing strategy, high visibility and that's well branded with appealing user interface can easily attract investors and influence investment decision even when it's a possible scam project.
A crypto can also enjoy beauty premium from influencers who if they are able to back it up can easily get her followers to invest into it, and can cause bubbles that's driven by hypes leading to increased interest and investment regardless of the actual utility or value of the asset.
We've seen how dogecoin that initially came as a joke gained significant after Elon musk came into the equation causing it to gain value even though it lacked unique technological advantages. Same happened for tap swap that's currently enjoying the beauty premium of the Solana blockchain and is getting all hyped up.
The beauty premium is a strategy that works in terms of branding your project in a manner that gives it an appealing reputation but that doesn't make those project feasible. Regardless of how well branded a site is or which famous person it's linked with, don't always trust it 100%. It could be Beauty and well appealing but still end up being a scam project.
This is my first time hearing the term "beauty premium," but I'm aware that most altcoins rarely hold up in the long term, with some even turning out to be scams. However, if a project successfully utilizes the "beauty premium" strategy to build a strong community and a large following, it could achieve marketing success and generate high demand, leading to potential short-term profits.
Personally, I prefer to invest in top 10 cryptocurrencies for the long term and focus on short-term gains with other projects. Perhaps in the future, if I discover another project with intrinsic value and successful marketing, I might consider investing in it.
I wonder how many people genuinely try to understand a coin's value, its impact, and its usage within the cryptocurrency field. Based on my experience and conversations with others, most people only check a coin's popularity before investing, hoping to profit and get rich quickly.
