Crypto’s future in limbo as Elon Musk’s Twitter limit raises concerns
Disclaimer: This article is purely based on several opinions and speculation. The information here does not entirely represent facts. Neither does it guarantee future happenings in the crypto market based on Twitter’s new policy.
- Twitter’s rate limit for users could affect crypto market engagement on the platform.
- Analysts say that the decision could trigger FUD and unwanted negative sentiment.
“Is Twitter down?” This was one question that spread around the social media platform on 1 July. And if you are an active user of the platform now run by Billionaire Elon Musk, these questions won’t be strange to you.
How much are 1,10,100 BTCs worth today?
But this time, it wasn’t just the occasional glitch where the platform gets back to normal. This time, Twitter made a new policy with “Rate limit exceeded” displays on many accounts.
The interesting part was that it was already in effect before many eyes could glimpse Elon Musk’s communique regarding the change.
Musk asks to see fewer eyes
The update involves the introduction of stricter rate limits. According to Twitter, this would regulate the number of tweets users can see per day.
Musk, on his part, defended the new rules, noting that it was done in good faith. He also added that the rule would address “Twitter addiction” and system manipulation.
However, the rules were different for regular users and new accounts. Additionally, Twitter Blue subscribers who pay $8 for better features have a different policy.
To address extreme levels of data scraping & system manipulation, we’ve applied the following temporary limits:
– Verified accounts are limited to reading 6000 posts/day
– Unverified accounts to 600 posts/day
– New unverified accounts to 300/day
— Elon Musk (@elonmusk) July 1, 2023
This change could have far-reaching consequences for the cryptocurrency market. As one of the social media platforms where crypto discussion thrives, the update could lead to restrictions on information dissemination.
Also, it could affect the functionality of crypto-related projects. Typically, several projects use the platform as the fastest information tool for their communities.
Although most of the projects are subscribed to the Blue version, the inability of thousands to millions of the crypto community to view information might mean it is done in futility.
Also, it is no news that analysts prefer to communicate with their community via the micro-blogging platform. But with the new policy in place, are these objectives not already defeated?
The restriction could lead to FUD
Motti Peer, Co-CEO and Chairman at ReBlonde, spoke to AMBCrypto about the matter. Peer, who is also a financial market and crypto expert, said the new rule could have a negative impact on overall market health. He said,
“These limits pose challenges for social interaction, coin visibility, and the potential spread of Fear, Uncertainty, and Doubt (FUD). Users may struggle to keep up with the evolving crypto landscape, impacting discussions, networking, and collaboration.”
In addressing the matter further, Peer mentioned that restricted access to tweets could hinder informed investment decisions. Also, he noted that it could amplify negative sentiment in the market.
While adding that users should explore other alternatives, Peer also backed the point that the rule could peg back crypto engagement. He said,
“As a platform that has long since been central to the crypto ecosystem, crypto enthusiasts, investors, and leading professionals as a source of discourse and knowledge sharing on market trends, and expert insights, Twitter’s new rate limit poses a significant challenge to the social interaction dynamics that is so central to the ecosystem.”
Jack Dorsey weighs in
It is also noteworthy to mention that the uproar alongside the displeasure shown by users caught the attention of Jack Dorsey. Since Elon Musk’s reign, the former Twitter CEO and Bitcoin [BTC] maximalist has been relatively quiet on the platform.
However, Dorsey pleaded that users give the Twitter team time to do “their best.” At the same time, he opined that criticism was expected.
Running Twitter is hard. I don’t wish that stress upon anyone. I trust that the team is doing their best under the constraints they have, which are immense. It’s easy to critique the decisions from afar…which I’m guilty of…but I know the goal is to see Twitter thrive. It will.
— jack (@jack) July 1, 2023
While he didn’t directly consider the impact on the crypto ecosystem, Dorsey had said projects like Bitcoin could help the cause while preserving the open internet.
Besides that, many market participants consider Twitter as the go-to platform to find emerging projects and cryptocurrencies that could be of interest. For instance, Pepe [PEPE], the meme coin which skyrocketed exponentially in a matter of weeks, got its boost through Twitter.
Furthermore, Marcin Kaźmierczak told AMBCrypto that the policy could affect the objectives of projects. He pointed out that some projects have dedicated Twitter Ask Me Anything (AMA) sessions as one of the major community-building strategies. So, this update could affect such practices negatively as well.
Memberships can’t fend off limitations
Kaźmierczak also agreed with Motti Peer’s opinion that the restriction could lead to a greater level of FUD in the market. The COO and Co-founder of decentralized finance oracle platform RedStone Oracles and Warp Contracts added,
“Over the years, Twitter has become one of the de-facto social platforms for crypto ecosystem participants, playing host to community announcements, and AMAs, while helping projects establish a firm foothold in the industry. With this new measure, users – depending on their membership status – will face limitations on the volume of tweets they can read and scroll past, which will hinder real-time discussions, pertinent information sharing, and community engagement around new tokens, project milestones, and industry developments.”
Meanwhile, Elon Musk followed up on his initial tweet, noting that the limit had been increased. However, another comment of his under the tweet suggested that the “8,000 for verified accounts” tweets could have been a joke.
Rate limits increasing soon to 8000 for verified, 800 for unverified & 400 for new unverified https://t.co/fuRcJLifTn
— Elon Musk (@elonmusk) July 1, 2023
Realistic or not, here’s ETH’s market cap in BTC terms
Despite Twitter’s decision, the crypto market cap has remained above $1 trillion dollars. And as of this writing, the market cap had increased by almost 1%. This has helped BTC stay above $31,000, and Ethereum [ETH] closed in on $2,000.
While it might seem too soon to evaluate the effect of the Twitter limit on the crypto market, it is important to point out that updates related to regulations, security measures, or policies concerning cryptocurrencies could potentially affect market participants’ sentiments and trading activities.