Is X Banning Crypto? Elon Musk Faces Backlash Over Tokenized Engagement Crackdown and AI Slop
Elon Musk's social media platform X is restricting crypto-linked projects that reward users for posting, a move that has drawn criticism from parts of the digital asset community. The platform is not banning cryptocurrency or crypto-related discussion entirely, but it is revoking API access for applications operating under the "InfoFi" model, which financially incentivizes user activity. This decision triggered a sharp sell-off in several related digital assets.
X's head of product, Nikita Bier, stated that such models contributed to spam and low-quality content. The backlash from users was mixed, with some arguing it penalizes legitimate creators, while others welcomed the crackdown on automated and repetitive posts.
Simultaneously, X continues to develop crypto-adjacent features, such as "Smart Cashtags," which link posts about stocks or digital assets to live market data. This policy shift occurs as Musk's AI chatbot, Grok, faces regulatory scrutiny for generating manipulated and sexualized images, leading to tightened controls on the tool.
ccn.com01/16 14:11