On August 30, 2024, Brazil’s Federal Supreme Court banned X (formerly known as Twitter), causing significant disruption for the country’s thriving crypto community. The platform, a crucial hub for information exchange among crypto investors, was shut down following an order from Justice Alexandre de Moraes, leaving many without access to vital updates on digital assets.
X Ban Hits Brazil’s Crypto Enthusiasts Hard
X was a key platform for crypto investors, with 41.7% of users globally relying on it for real-time updates about digital assets, according to CoinGecko. In Brazil, the platform ranked as the eighth most popular social media site, boasting 24.3 million users in 2023. Its sudden suspension has had profound effects on the country’s crypto community, which relied heavily on X for regulatory news and market developments.
Jessica Whitaker, a crypto investor and researcher, highlighted how this ban has made her work more challenging. She noted that many in Brazil’s digital asset sector depended on X for timely updates, particularly concerning Brazil’s emerging Central Bank Digital Currency (CBDC), known as Drex. With the platform inaccessible, staying informed about regulatory changes has become increasingly difficult, potentially delaying the country’s progress in the digital assets space.
Voices from Brazil’s Crypto Community
Prominent figures in Brazil’s crypto community have voiced their frustrations. Júnior Sperandio, an XRP community member and YouTuber, emphasized that X was his primary source of information for educating Brazilians on digital assets. Similarly, digital asset researcher Christiano Silva shared how the ban has disrupted his ability to access crucial updates. Both Sperandio and Silva believe that without X, Brazil’s crypto community is losing access to essential information, especially as regulatory changes accelerate.
The Uncertain Future of X in Brazil
The return of X in Brazil remains uncertain. Recently, the Attorney General’s Office (PGR) urged the Supreme Court to dismiss legal challenges to the ban, arguing that the suspension does not violate free speech rights and that the lawsuits lack legal merit. According to Silva, the platform’s reinstatement hinges on institutional and political factors, and he predicts that resolving these issues will take time.
Decentralized Social Media as a New Frontier
In response to the ban, some Brazilian crypto users are turning to decentralized social media platforms like Farcaster, a protocol launched in 2020. Farcaster has seen rapid growth, expanding its user base from 4,318 in January to 68,485 by August, with 9% of users located in South America. Alex Masmej, CEO of Draculaapp, a decentralized app built on Farcaster, explained that such networks are harder to shut down due to their distributed nature.
Another alternative gaining popularity is MeWe, a social media platform founded by Mark Weinstein. With over 20 million users and a strong focus on privacy, MeWe offers a promising substitute for those seeking a more secure online space.
Challenges Persist for Brazil’s Crypto Community
Despite these alternatives, many crypto users in Brazil are still grappling with the consequences of X’s ban. Silva noted that since the platform’s suspension, the quality of information about the crypto sector has deteriorated. He expressed concern that this represents a major setback for the country, further highlighting the critical role X played in Brazil’s rapidly growing crypto ecosystem.
