Skip to content

X Marks the Scam Spot: Elon Musk's Turbulent Reign & the Crypto Ad Crisis

Amidst a tumultuous period marked by Elon Musk's confrontational stance with advertisers, X is facing a surge in deceptive cryptocurrency advertisements, challenging the platform's integrity and user safety.

Table of Contents

In the whirlwind saga of Elon Musk's takeover of the once Twitter, now rebranded as X, the platform has become a hotbed for controversy, especially in the realm of crypto scams. Musk's acquisition, marked by fiery exchanges with advertisers, has coincided with a worrying surge in dubious crypto advertisements, sparking concerns about user safety and the integrity of X.

In the wake of Musk's profane outburst against major advertisers and his endorsement of a controversial tweet, X is grappling with a significant downturn in traditional advertising revenue. This situation has pushed the platform to increasingly rely on questionable cryptocurrency advertisements, leading to concerns about user safety and platform integrity.

Musk's acquisition of X has been anything but smooth sailing. His unfiltered outbursts against major advertisers and endorsement of contentious tweets have led to a significant slump in traditional advertising revenue. Major brands like Disney, IBM, and Apple have retracted their ad dollars, leading to a staggering projected loss of up to $75 million this quarter. Musk's refusal to "pander" to these advertisers has only exacerbated the situation, with several marketing agencies following suit in withdrawing their support.

Scam Central

In the wake of this advertising exodus, X has found itself increasingly reliant on alternative revenue streams, notably cryptocurrency advertisements. However, many of these ads are shrouded in suspicion.

A recent investigation by CCN has uncovered over 70 promoted posts that reek of scam, flying in the face of X's policy requiring pre-approval for financial and crypto product ads. These ads, predominantly from blue-badge premium accounts created in 2022 or later, dangle the carrot of free crypto airdrops, luring users to dubious URLs asking them to connect their crypto wallets.

The deceptive nature of these ads, often AI-generated and emanating from low-credibility accounts, raises red flags about user safety and the platform's integrity. X's shift towards targeting smaller and medium-sized businesses as a new revenue stream signals a strategic pivot but does little to assuage the growing concerns over the platform's direction under Musk's leadership.

Despite X's avowed commitment to rigorous advertising policies, the enforcement of these standards appears lackluster, especially considering the variations in regulations across different countries. CCN's report highlights that while many of these scam ads have been reported, little to no action has been taken, allowing the proliferation of such deceptive content on the platform.

Gone are the days when X was your reliable buddy for crypto chit-chat and market whispers. Now, it's more like a back-alley bazaar where every other stall is hawking "exclusive" crypto deals that smell fishier than a tuna sandwich left out in the sun. So, here's a little PSA: always double-check those too-good-to-be-true investment opportunities, keep your wallet details close to your chest, and remember, if it smells fishy, it probably is.

Elsewhere

Zodia Custody Joins Forces with Metaco to Amplify Global Digital Asset Network
This partnership is more than just a collaboration; it’s a fusion of financial powerhouses aiming to revolutionize the institutional network for digital assets.
Singapore’s DigiFT Wins MAS Regulatory Approval
DigiFT has graduated from the MAS FinTech Regulatory Sandbox to becoming a Capital Markets Services licence holder and a Recognised Market Operator
Crypto.com Enters UK E-Money Arena With FCA Approval
Crypto.com’s EMI authorisation allows it to offer a suite of UK-localised e-money products

Latest

What is the Fair Value of Bitcoin?

What is the Fair Value of Bitcoin?

According to two staff members of the European Central Bank, Bitcoin is still a harmful phenomenon with no inherent worth, even if it has been approved as an asset to be included in ETFs in the US. The OG cryptocurrency just crossed its two-year high today, sitting at $56,287

ETF Hype Pushes Ether to 2-Year Highs

ETF Hype Pushes Ether to 2-Year Highs

Anticipation for US spot crypto ETFs shifts focus to Ethereum, with investors eyeing Ether's outperformance over Bitcoin amid rising demand and potential legal challenges, despite regulatory hesitations and concerns over ecosystem centralization.