Elon Musk receives show of support from crypto pros

X owner Elon Musk received a show of support from crypto professionals, despite a storm of criticism and advertiser departures from his social platform after the world’s richest person made what critics perceived as an anti-Semitic comment. 

In a Nov. 18 post, Tamara Haasen, who presides over InputOutput, the engineering and research company behind Cardano (ADA), described Musk as an “effective” leader, a “great operator” and someone clear on what battles to fight.

Haseen’s post was in response to an earlier post by Musk stating X will be filing a “thermonuclear lawsuit” against Media Matters, a liberal advocacy group.

Media Matters recently claimed X, formerly known as Twitter, was taking insufficient action against misinformation, particularly concerning the Israel-Hamas war.

The group also published a report showing that X ads are shown alongside white supremacist content. The group also clapped back at Musk’s lawsuit on Saturday, predicting that if the Tesla CEO goes forward with a lawsuit, he will lose:

Compounding these issues, Musk’s recent comments on X, viewed as anti-Semitic, have further fueled an advertiser exodus.

Apple, Lionsgate, Disney, and IBM have all suspended their advertising campaigns on X. The European Commission too has announced cessation of advertising on X, citing the spread of disinformation.

A federal judge also turned down a bid by X to overturn a $150 million Federal Trade Commission (FTC) fine, a penalty from previous management missteps. An industry watchdog even urged the FTC to scrutinize X’s new ad formats, suggesting they lack proper disclosure clarity.

Musk has remained defiant, insisting he will voice his thoughts on the app, irrespective of potential financial loss. 

The Tesla CEO is a known crypto supporter, whose public endorsements of Dogecoin (DOGE) have gotten him into trouble with investors on occasion. X is also home to a thriving crypto community, and Haasen’s post, cosigned with a repost from Cardano co-founder Charles Hoskinson, underscores how some quarters of the community are coming to Musk’s defense.

With X’s ad revenue reportedly down by 50% compared to last year, the loss of significant brand partners could impact the app’s viability.

Even after significant cost-cutting measures like reducing staff and selling off resources, X teeters on the edge of profitability. In a recent interview, X CEO Linda Yaccarino hinted that the platform might be close to turning a profit by early 2024, but that was when most of their top advertisers had returned. Now, they are leaving once again.