Crypto without X? Consider it dead.
Regardless of whatever changes it has undergone since its Twitter days, X still acts as the “ground zero” of innovation
X and Beautifiers/Shutterstock modified by Blockworks
For companies and projects building their brands in the throes of an unforgiving cryptocurrency bear market, the quest for success is a relentless uphill battle. But in this digital Wild West, one social media ecosystem has emerged as the linchpin holding it all together.
That platform is X — but to say that X is merely a social platform would be a grave understatement. It is the very lifeblood of crypto projects, and an indispensable tool for their continued survival.
X plays a pivotal role in shaping the destiny of crypto projects. Regardless of whatever changes it has undergone since its Twitter days, X still acts as the “ground zero” of innovation, trendsetting, community building and collaboration within the crypto ecosystem.
The nexus of crypto innovation
Close your eyes for a moment in a bustling marketplace. Instead of wares, though, people are exchanging ideas, and influence serves as a social currency. This, my friends, is an accurate metaphorical depiction of X.
It’s the place where projects find fertile ground to grow and flourish. What makes X unique is its ability to catalyze the development of new and existing crypto solutions. It’s a melting pot where ideas are conceived, refined and then unleashed into the world. Without X, most crypto projects would remain in the shadows, lacking the exposure and feedback crucial for their evolution.
Crypto projects aren’t just about developers and investors; they are about people. And people need a place to connect, share ideas and build something greater than themselves. X provides that place. It’s the virtual town square where crypto communities gather to celebrate successes, overcome challenges, brainstorm, and collectively drive projects forward.
Undoubtedly, community is the backbone of any successful crypto project. It stands to reason that building a strong and engaged community is not an option; it’s a prerequisite for success in the Web3 space. And when it comes to community building, X is the cornerstone.
In the world of crypto, trends can emerge and fade faster than a blockchain confirmation. X not only keeps up with this pace, but it also serves as a live feed, providing a real-time pulse of the crypto world. It is where the most impactful Web3 trends are birthed, nurtured by the collective consciousness of blockchain technology enthusiasts and early adopters.
The market watches closely because it knows that those who navigate X effectively are often the first to identify the next big thing, giving them a substantial advantage in the crypto arena.
Market sentiment is significantly influenced by the social dynamics of crypto sub-communities on X. A classic example is the rapid rise to popularity, circa 2021, of so-called “PFP projects” characterized by the communal culture of representing on-chain assets as profile pictures on X. The massive success of the earliest iterations of this species of crypto project spurred a year-long NFT market boom and birthed countless personal and corporate brands within the crypto space.
The duality of modern social media
Another interesting and important part of the crypto experience on X is — and I don’t say this lightly — the drama. It’s arguably one of the most compelling aspects of Web3. Your X timeline is the easiest place to keep tabs on the constant attention shift in the space: Everybody knows that if there’s something worth sharing in Web3, you’ll probably find it there first.
This comes with attendant risks, of course. In the past few months, threat actors have pulled off high-profile scams via SIM-swap cyberattacks on influential X accounts. Vitalik Buterin, the head honcho of the Ethereum blockchain was not spared. Neither was Michael Siebel, a partner at YCombinator, nor a multitude of other notable influencers.
Read the other side from our opinion section: If we want crypto to succeed, we’ve got to give X the boot
It’s a phenomenon that has drawn criticism from the cybersecurity community. Experts opine that X needs to implement more stringent security measures as a norm. Independent security researchers like the anonymous “zachXBT” have made a name for themselves by busting crypto scams.
But it must be noted that both the good and bad: the scams and scam busters, the public feuds and fellowship; they’re two sides of the same coin. Labelling the platform as inherently bad due to these flaws would be akin to blaming the messenger for bad news.
Although it is not a perfect media machine, X is truly a mirror of the contrast in the crypto industry. It’s an openly accessible arena where the endless struggle between positive and negative forces rages in full view of the public eye. And boy, are our eyes glued.
What about decentralized social media?
While X continues to dominate the scene, there’s a wave of Web3 social platforms like Mastodon, Phaver and Link3. They aim to decentralize the social media experience, bringing it closer to the ethos of Web3. However, it’s noteworthy that these platforms have found it challenging to gain traction outside of niche Web3 communities. X, on the other hand, continues to record massive growth due to its cultural relevance and wide accessibility.
SocialFi platforms are another breed, combining the interconnected nature of social media with financial incentives in a decentralized model. Projects like FriendTech, built on Ethereum, have successfully attracted creators from outside the Web3 niche. Stars Arena replicated this success on the Avalanche blockchain.
It’s important to note that these platforms are not without their vulnerabilities. Security breaches and million-dollar exploits are a huge turn off, and a number of such incidents permanently crippled the Stars Arena platform.
The lifeblood of crypto projects
So, why do crypto projects need X? Because without it, the crypto world would be a fragmented, disjointed space. For Web3 companies building in a bear market, survival is a matter of innovation, trendsetting, community building, and collaboration. Although it faces some competition in the form of SocialFi platforms and Web3 social media, these players are far from mainstream.
With undeniable cultural relevance proven over multiple market cycles, X has proved to be a magnetic force behind the crypto ecosystem, and any project aspiring to succeed in this industry cannot afford to be without it.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
