CryptoQuant Founder Calls Out X for Targeting Crypto Content Over Bots

X's algorithm is suppressing legitimate cryptocurrency content, according to Ki Young Ju, founder of CryptoQuant. He cited a surge in bot-generated content mentioning crypto, with over 7.7 million posts in a single day. This rise in bot activity has prompted algorithmic crackdowns that, according to Ju, are disproportionately affecting genuine users and discussions.

Nikita Bier, X's head of product, explained that the platform's engagement issues were self-inflicted, attributing the decline in visibility of crypto content to over-posting and low-value interactions. He emphasized that users were limiting their own reach by focusing on repetitive greetings and spam rather than meaningful updates.

Elon Musk has announced that X will open-source its new algorithm within seven days. This includes all code used for organic and advertising post recommendations. The move comes amid growing scrutiny over the platform's handling of bot activity and content moderation.

Why Did This Happen?

X has faced significant backlash for its Grok AI bot, which was used to generate sexualized images without consent. In response, the platform restricted image generation and editing features to paid subscribers. This move was intended to curb the spread of harmful content, but it also highlighted broader concerns about bot activity and content visibility.

CryptoQuant's Ju noted that X's algorithm fails to differentiate between genuine users and bots, exacerbating the problem of low-quality content. The rise in bot-generated content is attributed to flaws in the paid verification system, which has become a vehicle for spam.

How Did Markets React?

The debate over X's content moderation policies has drawn attention from regulators and users alike. Britain's data regulator, the Information Commissioner's Office, has asked X to clarify how it is complying with data protection laws in light of the Grok AI bot controversy. Meanwhile, European lawmakers have expressed concerns about the industrialization of sexual harassment on the platform.

The platform's algorithmic adjustments have also affected legitimate content creators. Users reported lower visibility for crypto-related posts after a December 2025 algorithm update. This has led to speculation that the system is reacting to patterns that resemble spam campaigns.

What Are Analysts Watching Next?

Analysts are closely monitoring how X's algorithm will evolve as it moves toward open-sourcing its code. Musk stated that the new algorithm would be released every four weeks with comprehensive developer notes. This transparency could provide insights into how the platform ranks posts that mention crypto and other high-volume topics.

In addition, the platform's engagement issues are being scrutinized. X's head of product, Bier, attributed the decline in crypto content visibility to user behavior rather than algorithmic bias. This explanation has sparked discussions in the crypto community about the need for better posting strategies and quality content.

The broader implications for the crypto community are significant. As X continues to refine its algorithm, the balance between moderating bot activity and preserving the visibility of legitimate content will remain a key concern.