Elon Musk Receives Crypto Community Support Amid Advertiser Exodus and Legal Challenges on X

Despite facing criticism and losing advertisers on his social platform following a comment perceived as anti-Semitic, Elon Musk, owner of X (formerly known as Twitter) and the world’s richest person, has received support from cryptocurrency professionals. Tamara Haasen, leader of InputOutput, the company behind Cardano (ADA), praised Musk as an effective leader and strategic thinker. This support came after Musk announced X’s plan to file a “thermonuclear lawsuit” against Media Matters, a liberal advocacy group accusing X of not adequately addressing misinformation, especially regarding the Israel-Hamas conflict.

Media Matters also reported that X was displaying ads next to white supremacist content. Musk’s comment has led to an advertiser exodus, with major companies like Apple, Lionsgate, Disney, and IBM suspending their campaigns. The European Commission also stopped advertising, citing misinformation concerns.

Additionally, a federal judge rejected X’s attempt to overturn a $150 million FTC fine from previous management errors, and there are calls for further FTC scrutiny of X’s new ad formats. Despite these challenges, Musk remains outspoken on the app, even if it means financial loss.

Musk, a known crypto enthusiast and occasional Dogecoin promoter, finds some support within the crypto community, with Haasen and Cardano co-founder Charles Hoskinson defending him. However, X’s ad revenue is reportedly down 50% from last year, and the loss of major advertisers threatens its viability.

X is struggling for profitability, with cost-cutting efforts like staff reductions and resource sales. X CEO Linda Yaccarino suggested a potential profit in early 2024, assuming the return of top advertisers, but the current trend shows them leaving again.

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