Crypto Community Rallies Behind Elon Musk Amid Advertiser Withdrawal from Social Media Platform

Elon Musk, the new owner of a prominent social media platform, has been receiving commendation from cryptocurrency professionals, even as he faces backlash and an exodus of advertisers from the platform following his controversial remarks perceived by some as anti-Semitic.

Tamara Haasen, the leader of InputOutput, the company behind the Cardano (ADA) blockchain, shared her support for Musk, calling him an “effective” leader and a “great operator” who knows which battles to pick. Haasen’s comments were in response to Musk’s announcement about a potential “thermonuclear lawsuit” against Media Matters, a liberal advocacy group that accused the platform, now under Musk’s management, of not effectively addressing misinformation, particularly in the context of the Israel-Hamas conflict.

Media Matters also reported that advertisements on the platform were being displayed alongside white supremacist content, leading to notable companies like Apple, Lionsgate, Disney, and IBM halting their advertising campaigns. Additionally, the European Commission announced it would stop advertising on the platform due to concerns over the spread of misinformation.

Adding to the platform’s woes, a federal judge rejected an attempt by the social media company to overturn a $150 million Federal Trade Commission (FTC) fine related to the platform’s previous management. Furthermore, an industry watchdog called for the FTC to closely examine the platform’s new advertising formats for lack of transparency.

Despite these challenges and a reported 50% drop in ad revenue compared to the previous year, Musk remains steadfast, vowing to express his views on the app regardless of financial repercussions. His vocal support for cryptocurrencies like Dogecoin (DOGE) has previously stirred controversy among investors.

The support from Haasen, echoed by Cardano co-founder Charles Hoskinson through a repost, highlights a segment of the crypto community backing Musk amidst the platform’s advertising crisis.

As the social media company grapples with reduced ad revenue and the departure of major brand partners, its financial stability is under scrutiny. Despite efforts to cut costs and optimize resources, the CEO of the platform, Linda Yaccarino, hinted in a recent interview about the potential for profitability by early 2024, contingent on the return of top advertisers – a prospect now uncertain with the renewed departure of key advertisers.