Letter #2: The dangers of echo chambers

In the new world of "social investing", echo chambers are more dangerous than ever. A letter dedicated towards "thoughtful socializing".

Letter #2: The dangers of echo chambers
Echo chambers imagery

Dear FindTheWei,

It has been a joy to see you engaging with communities and proactively contributing your thoughts. The space is lucky to have so many new contributors like yourself that help build block by block the potential future of art and finance. Last we spoke, you mentioned a particular group you joined, the one you described as "lively" and "energetic" about the future profit of current members. It is no secret that the majority of the people in the space are here seeking financial freedom. However, do not forget the lengths some communities may go to secure that freedom does not benefit you.

Indeed, it is positive to have a community that pushes for ongoing discussion, decision making, and strategy building. However, I will advise you to note how the discussion is moderated within your community and if other potential factors may affect how other members contribute. Drinking from an unclean well leads to a cruel death. A society that does not allow for dissenting opinions is not a place for discussion but a conclusion.

Be wary of so-called "communities" that reward members for going along with the majority opinion, members incentivized to agree to earn group-specific rewards mindlessly. Once incentives for agreeing to outweigh the incentives for unique points of view, a community will quickly adjust to become more of an "echo chamber" than a community. Once decline begins, it becomes more difficult to parse through quality comments with equally quality shills.

It is wise to know what you're aiming to gain from community involvement. Typical reasons can be

  • making new connections,
  • learning more about specific projects
  • finding new ways to utilize your skills.

Be thoughtful and take note of whether the group you're joining progress or deters your ambitions. Be cautious if you are fed visions of grandeur like a lamb to the slaughter. If in doubt, communities ask you to think, echo chambers ask you to HODL.

Any group looking to pump and dump on others will inevitably pump and dump on you. The same person pressuring others to buy is currently selling. Do not waste time contributing to groups such as these. The networking benefits drop to nill working with those whose only real strategy is to lure in unexpecting newcomers. Your efforts become better utilized in more legitimate projects that can lead you to friendships with others looking to grow within the industry.

I can see from your actions that you're ambitious, and you strive to be quality in your work and your thoughts. However, I recommend that you think seriously about where you decide to "put up shop." Although there is a benefit of joining "exclusive" communities through the use of NFTs, I warn that attaching yourself to a community that is linked to a particular project/NFT can lead to a conflict of interest if the project you're holding is doing well.

From my own experience, holding onto a Bored Ape and being accepted into the community-made it increasingly difficult to view the investment with any form of neutrality. Debating whether to sell or to hold was seen as heresy and this led to the community that I had involved myself with turning more into a toxic echo chamber rather than a group to discuss and learn from. Learning from this experience, I take greater care in deciding where to place my input.

This letter is not to be read as a crusade against places like /r/cryptocurrency, BAYC, or your favorite NFT discord. On the contrary, I vouch for the benefits of thoughtful socializing, an understanding of the type of information you're receiving, and how potential factors could lead to a decrease in the quality of discussion. With this in mind, you will be able to easier benefit from all types of discussion regardless of quality, as all things are useful if you use them for their purpose.

Continue to update me with your latest revelations; it is always refreshing to read your thoughts on the space from your point of view. Based on the pace you have been making, I have high hopes to see where you will go. An investment in the right community will blossom beautifully, and I have faith that you will be able to tell the difference.

Regards,
FoundTheWei

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