X Considers New Rules to Combat Crypto Scams
02 Apr 2026 · 20:15 UTC · Cointelegraph RSS Feed · Original source
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Summary
X (formerly Twitter) is considering implementing new rules that would lock accounts making their first crypto-related posts and require verification, according to platform executives. The policy was developed in response to a recent scam in which a user falsely reported the death of a tortoise to manipulate markets and defraud users. Under the proposed measure, new users posting about cryptocurrency would face account restrictions until they complete a verification process. The initiative aims to reduce fraudulent cryptocurrency-related activity on the platform by adding friction to accounts attempting to spread scams or manipulate sentiment. X has not yet announced a specific implementation timeline or detailed verification requirements, but the measure reflects growing concern about crypto-related fraud on social media platforms. The tortoise scam exemplifies how bad actors exploit X's open nature to distribute false information for financial gain.
Why it matters
X hosts millions of daily crypto discussions and serves as a primary information source for retail traders. Platform-based scams undermine confidence in crypto discussion spaces and directly harm users financially. By adding friction to accounts posting crypto content for the first time, X reduces scammers' ability to rapidly create fake accounts and execute fraud campaigns. The tortoise hoax represents the type of manipulation that erodes trust. The policy acts as a trust-building measure for mainstream adoption. Causal mechanism: reduced scams → increased platform safety perception → modest positive sentiment shift → minor bullish pressure over weeks/months. Key assumptions: policy is implemented; verification doesn't excessively burden legitimate users; scam reduction actually improves retail confidence. Uncertainties: magnitude of scam reduction; actual user adoption of the new verification system; whether institutional investors care about platform-level moderation. This is fundamentally a sentiment/adoption story rather than a technical or macro driver, explaining why confidence is moderate and directional bias is modest.
Expected impact
X's consideration of anti-scam measures targeting first-time crypto posts represents a modest positive development for the broader crypto ecosystem. By implementing account locks and verification requirements, X aims to reduce fraudulent activity and scam-related posts on the platform. This should incrementally improve sentiment around crypto adoption by reducing user exposure to scams and hoaxes. The tortoise scam incident demonstrates real-world harm from platform-based crypto fraud. Longer-term benefits accrue from increased trust in X's crypto discussion spaces and reduced retail investor losses to scammers. However, immediate market price impact is likely limited unless the policy is perceived as a major institutional acceptance catalyst. BTC may see modest positive drift, while ALT coins—more sensitive to sentiment shifts and adoption narratives—could experience more pronounced gains across daily to monthly timeframes.