Down Arrow Button Icon

The circus surrounding the final downfall of Sam Bankman-Fried, which played out on TV and in Washington, D.C., all week, overshadowed another important development in the crypto world—a growing disillusionment with Twitter’s new owner. In a series of tweets, key figures on so-called Crypto Twitter expressed displeasure with Elon Musk’s handling of the platform that is central to the industry’s news and identity.

The response is notable since news of Musk’s purchase of the platform was hailed by many among the crypto crowd, which has a strong libertarian bent, as a welcome development. Many cheered his arrival, believing he would leave the platform alone while curbing some of the excesses of the woke left. It hasn’t worked out that way: In his short tenure as Twitter’s steward, Musk has embraced all of the worst impulses of the previous regime—and more.

Instead of restoring political neutrality to the platform as he promised, Musk has used it for the dumbest sort of culture antics—promoting lies and cruelty and silencing anyone who disagrees with him. Meanwhile, he has failed to deliver promised technical fixes such as reducing bots, and presided over the breakdown of key features.

Even more, Musk’s latest dictatorial behavior—which includes kicking journalists and competitor Mastodon off Twitter—has some influential crypto figures speaking out. Peter McCormack, the popular host of What Bitcoin Did and who is no one’s idea of a lefty, complained Musk’s campaign against “wokeness” had gone too far, writing: “Yes, diversity and inclusion is tricky, but this does not mean we shouldn’t be aware and against prejudice.”

Neeraj Agrawal, the communications director of Coin Center whose memes and insights have made him a popular figure across crypto, observed: “Who knows? Maybe Elon could have successfully turned Twitter into a paid platform, but he ruined his chances by making it all about the culture war. This place is done for”—earning a nod of agreement from influential right-leaning reporter Frank Chaparro.

All of this may seem like just another micro-drama of the sort that Twitter users have delighted in for years. But this time feels different. What Musk is doing is destroying the most important media platform in the world for no better reason than owning the libs. This destruction is only accelerating in light of his latest decision to purge his critics, including prominent journalists, which will lead others—including me—to feel they have no choice but leave as well. A once-vibrant source of debate and information is quickly on its way to becoming a deserted, bot-ridden clown show.

This is a sad development for Crypto Twitter, which has for a decade used the platform to make friends, share ideas, and in many cases outdo the mainstream media when it comes to reporting important stories. If you want a silver lining, many crypto figures are already predicting that Musk’s decision to wreck Twitter will only accelerate the creation of a decentralized Web3 alternative. Fingers crossed they’re right.

Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts

DECENTRALIZED NEWS

Startup Aztec Network raised $100 million in a Series B round led by a16z to build a Web3 “privacy layer” that involves letting users encrypt individual activities on Ethereum. (TechCrunch)

New York’s powerful financial services regulator NYDFS issued new rules for banks that want to move into crypto. (WSJ)

The incoming GOP chair of the Financial Services Committee asked the Treasury Secretary to delay reporting rules imposed on crypto companies as part of last summer’s infrastructure law. (CoinDesk)

Embattled Singapore-based Amber Group raised $300 million at a lower valuation in order to pay customers after it lost 10% of its trading capital on FTX. (Bloomberg)

Donald Trump disappointed his fans by revealing his “MAJOR ANNOUNCEMENT” as a scheme to sell $99 NFTs depicting him as a superhero. (Decrypt)