CryptoQuant Founder Slams X for Penalizing Crypto Content Instead of Bots

X's platform is facing growing criticism from the crypto community over the declining visibility of cryptocurrency-related content. The issue has sparked debate as users question whether algorithmic changes are at fault. The discussion gained traction after Nikita Bier, X's Head of Product, explained the platform's stance on crypto content visibility.

Bier attributed the decline in reach to user behavior, particularly the use of low-value replies such as repetitive greetings and buzzwords. He described this as a form of 'suicide,' where users limit their own exposure by prioritizing spammy content over valuable updates. This approach reduces the visibility of important posts, such as project announcements, because users' daily content capacity is capped.

The average X user sees only 20–30 posts per day. When most of those posts are low-value, meaningful content gets buried. Bier emphasized the need for creators to shift focus from quantity to quality, ensuring their content reaches the audience effectively. This has led to a push for more thoughtful and informative posts from crypto creators.

Elon Musk has announced that X will open-source its new algorithm within seven days, a move that will include all code related to organic and advertising post recommendations. Musk stated that this process will be repeated every four weeks, with detailed developer notes explaining changes. This decision comes amid regulatory scrutiny and user complaints about the platform's content visibility and algorithmic biases.

The open-sourcing of the algorithm could provide greater transparency for developers and users. However, Musk has not yet explained the rationale behind the move. This announcement follows a French probe into alleged algorithmic bias and manipulation, which X has characterized as politically motivated.

Why Did This Happen?

The decline in crypto content visibility is not due to algorithmic changes, according to Bier. Instead, it stems from user behavior. When users fill their daily feed with spam or low-value content, important updates are pushed down. This has led to frustration among crypto creators who are adapting to a new strategy of prioritizing quality over quantity.

The platform's algorithm does not actively hide content, as some users have claimed. Bier's explanation has led to a shift in focus within the crypto community—from blaming the algorithm to understanding the role of user behavior in content visibility.

How Did Markets Respond?

The market response to these developments has been mixed. While X's decision to open-source its algorithm has been welcomed by some as a transparency move, critics remain skeptical. The French investigation and potential regulatory actions in other jurisdictions have raised concerns about the platform's compliance with content moderation laws.

Meanwhile, Rumble and Tether have launched a new crypto wallet to support the creator economy. The Rumble Wallet, integrated into the video-sharing platform, allows users to tip creators in crypto without intermediaries. This development highlights the growing integration of crypto into digital platforms and the shift toward decentralized payment systems.

What Are Analysts Watching Next?

Analysts are closely watching the impact of X's algorithm changes on user engagement and content visibility. The open-sourcing of the algorithm could lead to more scrutiny and potential modifications. The platform's ability to balance transparency with user experience will be a key focus.

Additionally, the Indian government's new KYC requirements for crypto users are drawing attention. Selfie verification with liveness detection, geographical coordinates, and the 'penny drop' method are now mandatory. These measures are part of broader anti-money laundering efforts and could affect user onboarding and compliance for crypto exchanges in the region.

The broader cryptocurrency market remains under regulatory scrutiny across multiple jurisdictions. With increased transparency and compliance measures, the long-term outlook for crypto content visibility may hinge on both platform policies and user behavior.