Normally for the Check Yourself: Facts series, we’d be analyzing a media item about BTS or ARMY, reviewing it, and breaking down its usefulness in the overall media conversation about BTS and their journey or mission.
However, an important stone in the foundation of this series is fostering knowledge — and while this is primarily about the media and BTS’ appearance in it, there are other issues that may arise within our fandom which are just as important for us to understand.
One such issue arose in late January and early February of 2021 as ARMYs on Twitter started discussing collaborations between cryptocurrency accounts and ARMY “big accounts” for sponsored giveaways. Unsurprisingly, this caused quite a stir because money was involved; economics is a complicated subject at best, and in this sort of situation, with a currency that’s not exactly like a normal currency, it’s even more so.
While the cryptocurrency controversy within ARMY hasn’t hit the news, there’s a lot to unpack, and it’s essential that we do — we need to understand this economic phenomenon so that we can make informed decisions about the currency itself, how we use it, and situations where it comes up.
So, for the first time in this series, we’re stepping away from directly analyzing the media. Instead, we’re pitting ourselves against the silent, massive entity of economics and checking the facts on cryptocurrency to create your “one-stop shop” on this piece of controversial virtual reality. Settle in and grab your snacks — this one’s going to be a journey.
So, what exactly is cryptocurrency?
This is by no means an easy topic to understand. Let’s get that out there right upfront. Understanding every facet of how this virtual currency works may or may not require a full-blown economics degree. However, there are a few important points that we can use to create a functional base of knowledge, so let’s begin there.
Cryptocurrency is also sometimes shortened to “crypto,” and there are thousands of different types of cryptocurrency in existence. Bitcoin was the first type of cryptocurrency, first appearing on paper in 2008. It’s also one of the most popular today, even to the point of being confused as a separate thing entirely due to the term being used generically to mean the currency itself, used as “bitcoin.” However, cryptocurrency is the umbrella term over the company called Bitcoin and all its 5,000+ counterparts (according to NerdWallet, that number is actually over 6,700).
All cryptocurrency types are digital and based on something called “blockchain technology.” The term ‘crypto’ likely comes from the cryptography that is used to secure online transactions of digital currency.
In order to have cryptocurrency, a user must exchange real, traditional money for it, somewhat similar to stock exchanges. Blockchain technology monitors all transactions, including the initial purchase and eventual crypto exchanges.
A Forbes Advisor article describes a blockchain as being like a checkbook or another notebook where you record all the monetary transactions you make. When someone writes a physical check, they record the essential information about the check — such as the check number, the amount of money on the check, and the recipient of the check — in a log so that they can keep track of where their money went. That log also tracks when a deposit or a cash withdrawal is made.
Cryptocurrency blockchains operate much the same way. In the same Forbes article, Buchi Okoro, CEO and co-founder of the cryptocurrency company Quidax, describes blockchain like this: “Imagine a book where you write down everything you spend money on each day. Each page is similar to a block, and the entire book, a group of pages, is a blockchain.”
The obvious difference between a traditional checkbook and a cryptocurrency blockchain, however, is that a traditional checkbook is personal (or perhaps for a family) and a blockchain is available to every person who uses cryptocurrency.
What makes cryptocurrency popular?
NerdWallet highlights four of the most likely reasons why cryptocurrency has so many supporters in their article “What Is Cryptocurrency? Here’s What You Should Know” article from February 19, 2021. The article states that supporters see cryptocurrencies as the “currency of the future” and emphasizes that they are buying up this currency as fast as possible now before it becomes more valuable.
Additionally, cryptocurrencies are touted to be very secure due to the cryptography used to protect the blockchain technology, which is of course a concern when doing virtual transactions. Cryptocurrencies are different from traditional forms of currency in that they are decentralized, which means that there is no central authority dictating the value of the cryptocurrency, such as a bank.
They also emphasize that some speculators believe that cryptocurrency is going up in value and, out of the hands of banks, there won’t be a reduction of value due to inflation, which is another point of popularity among those who support the use of cryptocurrency.
In recent months, it does seem that this prediction is coming true, at least regarding value increase — the bitcoin price has skyrocketed by over 500% over the past twelve months, according to Forbes, which is likely due at least in part to billionaire Elon Musk’s pro-cryptocurrency tweets and the announcement that his company, Tesla, would be adding bitcoin to its balance sheet. Though Musk has tried to emphasize that he is a separate person from Tesla and that their decisions and his are not directly intertwined, the fact that they have both been emphasizing cryptocurrency recently has no doubt influenced the rise in popularity and thereby the increase in value or price.
In fact, for a bit of perspective on cryptocurrency’s current trajectory and popularity: Business Insider published an article on February 20, 2021, about Bitcoin and its “meteoric” rise — so much so that experts are now starting to debate Bitcoin’s staying power in comparison to perhaps the most well-known and longstanding investment entity: gold.
How is cryptocurrency used?
So, once you have cryptocurrency, how can you use it?
Apparently, cryptocurrency can theoretically be used for purchases just like a regular currency, but according to Forbes, it’s not a widely-accepted method just yet. Some online retailers, such as Overstock.com, will allow you to use Bitcoin, and recently PayPal announced that they will be launching a new service that will allow people to access and use cryptocurrency through their PayPal accounts. This could mean an influx of companies that will allow people to use cryptocurrency to complete their purchases.
At the moment, however, all the sources mentioned in this article explain that these cryptocurrencies are typically used as an investment, just like gold or more traditional stocks. NerdWallet and Business Insider both discuss this in great detail in their articles we sourced here, laying out the pros and cons of cryptocurrency as an investment; Business Insider specifically consults experts in the field to try to determine whether or not Bitcoin or gold is the best investment for the future.
Overall, the opinion on cryptocurrency as an investment seems to be mixed: some experts question the stability of the currency in the long term, while others support the idea and view it as a “digital gold” that could have the staying power to truly be the currency of the future.
What happened with ARMY?
The exact causes of the situation as it applies to ARMY are unclear, so it’s difficult to reconstruct the timeline of how the cryptocurrency giveaway collaborations became prevalent in the community. One possible explanation is that, as cryptocurrency became more popular, crypto accounts approached ARMY accounts due to the size of the ARMY community and its social media momentum.
So what exactly are these cryptocurrency giveaways and why are they an issue? After all, giveaways are a well-known part of the ARMY community: big accounts will buy extra BTS albums and do retweet giveaways, usually with two rules — you have to be following their account and you have to retweet and like the giveaway tweet.
This is where cryptocurrency giveaways differ. Instead of just interacting with the ARMY account, there will be at least one third-party account that you have to like and follow in order for your likes and retweets to “count” for the giveaway. These third-party accounts are cryptocurrency accounts.
Behind the scenes, these crypto accounts will reach out to large ARMY accounts and offer to pay for or sponsor a giveaway. One Twitter user, Meg, who runs a BTS art account, @artansonyeondan, shared with the Twitterverse that prior to the BE comeback, she had been approached by a cryptocurrency account via DM. They had asked if they could “pay / sponsor” (sic) a giveaway with her art account. In this particular case, they used a tweet from another ARMY account as a template to show Meg how they wanted the giveaway to look, which is apparently a part of the formula they use to initiate these conversations.
There are two primary issues with crypto giveaways that put them in a negative light.
First, similar to the mukbang YouTubers back advertisement controversy that surfaced in Korea in 2020, the ARMY accounts that are running these crypto-sponsored giveaways are being given money by the cryptocurrency accounts — something they largely did not explain to their followers and participants in the giveaways until after those facts surfaced independently.
BTS History (@BTS_History613) and @jeonbubbles were two large accounts that posted explanatory threads after the fact about their use of sponsored giveaways, both for either “clarification” or “transparency” (respectively). It is worth noting that both accounts, as of when this article was written, are now suspended, so verification of their statements can only come through screenshots that were previously taken.
As with the mukbang YouTuber controversy, a large part of why the public was so upset about the sponsorships was not the fact that they happened but rather the fact that they were not disclosed. Regardless of how the funds were used (as BTS History claimed the funds were not for personal use), people prefer to know how the money they spend is going to be used.
For example, one of the most recent crypto-sponsored giveaways was centered around raising support for V and Jungkook’s rumored upcoming mixtapes. Hypothetically, if you are participating in a giveaway thinking that your support is going to be directed to the boys, and then you find out that a portion of the money went to someone else without informing you...well, it leaves a bad taste in people’s mouths. Transparency after the fact can help to mitigate the damage, but when it comes to others’ money, it’s hard to completely fix a situation that has gone sour.
Finally, as the CompSci & Security ARMY (@ArmyCompsci) account explains in their Twitter thread on the subject, there is scam potential with cryptocurrency accounts. Unscrupulous people will purchase high-engagement, high-traction accounts specifically so that they can use those accounts for their own purposes, such as sharing links that will lead users to unsafe websites for phishing or spreading malware.
It is important to mention that not every account engaging in a sponsored giveaway is doing so with bad intent or any intent beyond profit through cryptocurrency partnerships. However, the potential does exist, and it’s something to be aware of. Additionally, CompSci & Security ARMY mentions that, as far as they know, it is not possible to steal account information using just a like, retweet, or follow. It seemingly would be through following suspicious links or the equivalent that a user’s information might be at risk.
What’s the takeaway?
This has been a lot of information to process about a complicated topic. However, there are a few key points to keep in mind:
Cryptocurrency itself is safe to use — experts in our sources agree on this.
This type of currency has become increasingly popular, so it’s likely that we’ll be seeing more of these types of things coming in the future.
If a giveaway on Twitter requires you to follow third-party accounts, there’s a high probability it is a cryptocurrency account and that the ARMY account is profiting off the partnership.
While not every account that is using a cryptocurrency third party is doing so to engage in illegal behavior or other suspicious activity, the possibility exists.
When looking at these giveaways, as with any online interaction, above all things — trust your gut. If something looks suspicious, then it probably is, and your instincts can tell you that. Use your caution to keep yourself safe, and you’ll be able to navigate the muddy waters of digital economics just fine.
DISCLAIMER: We do not own any audio & visual content in this video except for the editing. ALL RIGHTS BELONG TO THE RIGHTFUL OWNERS. No copyright infringement intended.
Written by: Anna Moon
Edited by: Mheer
Checked by: Clare
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