Twitter Rolls Out Twitter Coins, Allowing Users to Support Creators
According to recent reports, Twitter has rolled out its BETA version of Twitter Coins after some users claimed they bought the coins and posted pictures of their wallets with the number of coins on the platform.
One Twitter user, @Tree of Alpha, shared a picture of the number of coins he bought, confirming the microblogging platform’s rollout of the feature. He revealed that the first pack of Twitter Coins available was 150 coins for $1.99, with Stripe being the only payment option.
He purchased one pack and received 215 coins, and he is currently checking to see what he can get with them.
CEO of IBC group, Mario Nawfal, also confirmed the rollout of Twitter Coins on his Twitter handle. The coins have reportedly been made available to a limited number of customers or users in a controlled and gradual manner to monitor their effectiveness, a process known as a soft launch, Investors King has learnt.
Twitter’s coins will enable users to support creators who share great content and can also be a source of income. Unused coins will remain in the user’s balance, and as users receive coins, they accumulate into Diamonds, which can be cashed out.
However, recipients of these coins will have to wait until their balance crosses $50 to redeem them for actual money.
Twitter Coins are virtual goods and bear similarities to Reddit tipping and rewards systems where Redditors use “Reddit coins” to send awards to other users who make a post, comment, or live video broadcast that they enjoyed.
Although some Twitter users had hoped that the project would involve cryptocurrency, especially Dogecoin, given Elon Musk’s affiliation with the token, the coins do not involve cryptocurrency.
Twitter to Permit Only Verified Accounts in For You Recommendations
Starting from April 15th, only verified Twitter accounts will be eligible to be in For You recommendations.
This was disclosed by Twitter’s CEO Elon Musk on his Twitter handle, which according to him is the only realistic way to address advanced AI bot swarms taking over the platform.
Musk wrote on Twitter;
“Starting April 15th, only verified accounts will be eligible to be in For You recommendations. This is the only realistic way to address advanced AI bot swarms taking over. It is otherwise a hopeless losing battle. Voting in polls will require verification for the same reason. That said, it’s okay to give verified bot accounts if they follow terms of service & don’t impersonate a human”.
Fake or spam accounts otherwise known as bot accounts are visible on Twitter which are usually automated and not run by human users. They often make use of the reply function or direct messages to send adverts or scams to users or represent attempts to influence public discourse by tweeting something controversial.
Other fake accounts exist purely to boost the metrics of individual users, who can buy followers, likes, and retweets from bot sellers who control thousands or millions of fake accounts. Because they also inflate Twitter’s daily user numbers, they pose a threat to the company’s advertising revenue.
It would be recalled that before Musk acquired Twitter, he wanted to opt out of the $ 44 billion deal after he queried Twitter’s claim in SEC filings that a small proportion of its users were fake or spam. Musk further suggested that he could seek to pay a lower price for Twitter because of the fake accounts issue. However, after a relatively short court drama, Musk agreed to purchase the platform for the initial offer and has so far devised different means to address the bot issue on the platform.
Before the recent strategy to reduce bots by permitting only verified accounts in For You Recommendations, Musk had earlier rolled out a paid verification feature that will charge $8 per month to verify users’ accounts, which he claimed that the plan would solve the platform’s issues with bots and trolls while creating a new revenue stream for the company.
Musk believes that paid verification increases the costs of making bots by 10,000 percent and makes it easier to identify them. Meanwhile, the paid verification policy raised concerns about misinformation on the platform, as virtually anyone willing to pay the price could attempt to impersonate a public figure under the guise of a verification mark. However, in a bid to prevent this, Twitter has taken a step further by reviewing Twitter Blue accounts before granting them verification.
Moving forward, Investors King understands that Musk has also recently disclosed that only Verified accounts will be able to take part in polls on the platform. This is coming after a Twitter user suggested that Blue subscribers should be the only ones that can vote in policy-related polls.
Elon Musk Unveils Twitter Valuation at $20 Billion, Sees Clear Path to $250 Valuation
Recent reports reveal that Twitter CEO Elon Musk has put the company’s valuation at $20 billion, which is a significant drop from the price he purchased the company in October last year at $44 billion.
Despite the unimpressive company’s valuation, the billionaire owner told employees that he sees a clear but difficult path to a $250 billion valuation, a hypothetical outcome that would make the company’s current stock price worth 10 times as much in the future.
He further added that the company would allow employees to sell stock every six months, a practice that is also implemented at SpaceX, his space equipment manufacturing company. The sales of private stock would allow employees to have liquid stock but without the stock price chaos and lawsuit burdens of a public company.
Musk disclosed that radical changes including mass layoffs and cost-cutting would be carried out at the company where necessary, to avoid bankruptcy and streamline operations. The decline in the valuation of Twitter doesn’t come as a surprise owing to the fact that since Musk’s takeover of the micro-blogging platform, he has carried out a series of changes, especially in content operations which have scared off advertisers from the platform.
It would be recalled that at the start of 2023, the company’s daily revenue was reportedly down 40 percent from a year ago after more than 500 of its top advertising partners such as Audi, Pfizer, Ford, and the likes paused ads spending on the platform.
Also, concerns about an increase in hate speech on the platform after its acquisition by Musk who described himself as a “free speech absolutist” prompted advertisers to withdraw in droves. They have also been alarmed by a spate of impersonator accounts that flourished on the site after a botched relaunch of its blue tick scheme for verified users. Ever since, Twitter has remained in the grip of an advertising squeeze, after the social media platform hit a 40% drop in revenue.
Advertising is disclosed to be the main source of income for Twitter, which represents more than 85% of the company’s revenues. In 2021, advertising accounted for more than 90% of its $5.1bn in revenue. Musk perturbed by the company’s revenue decline in a bid to woo back advertisers on the platform, offered free advertisements to brands.
Musk rolled out a lucrative plan where companies who spend more than $500,000 on Twitter ads will receive a 100% match on their spending in equivalent marketing value up to $1 million. The platform also partnered with ad tech companies DoubleVerify and IAS on brand safety initiatives amid advertiser exits. These platforms will inform advertisers if their ad is placed around inappropriate content.
Investors King understands that Musk has been working tirelessly to increase Twitter’s revenue, the recently launched Twitter Blue program according to reports looks to have around 300,000 subscribers, which would mean that Twitter is currently bringing in an extra revenue of around $2.4 million per month via the program, or $7.2 million per quarter.
Known for his ambitious nature, Musk will continue to look for ways to generate more revenue for Twitter, after he recently told employees that “Twitter is being reshaped rapidly”.
Twitter Paid Blue Service Made Less Profit Three Months After Relaunch
Recent reports reveal that microblogging platform Twitter paid blue service has made less profit since its relaunch three months ago.
The giant social media platform relaunch of its blue service which comes with enhanced features such as an edit button, verification badge, etc, has earned the platform just $11 million in mobile-based subscriptions since it was acquired by Elon Musk.
Although the $11 million is no doubt an underwhelming amount, it should be noted that web-based subscriptions are not included in the calculations. Investors Kings understands that the figure represents the statistics of the 20 markets where the Twitter Blue service has been launched.
Meanwhile, Twitter’s blue service with verifications is now available everywhere, and the old checkmarks will vanish on April 1 this year, which may likely increase Twitter’s revenue. Reports show that Twitter Blue has more than 385,000 mobile subscribers worldwide on both iOS and Android. The U.S. is its biggest market which accounts for 246,000 subscribers spending around $8 million through their mobile devices.
The decline in the usage of the blue service has been attributed to the overall uncertain economy, which had slowed down market spending. It is also happening at a time when the platform has witnessed a massive drop in its revenue after several giant brands such as Ford, Audi, Pfizer, etc paused their advertisements. Ad revenue represented $1.08 billion of Twitter’s $1.18 billion total revenue in the second quarter of 2022, the last period when the company’s financial data was publicly available.
It would be recalled that Musk in a bid to lure brands back to the platform, unveiled a lucrative plan where companies who spend more than $500,000 on Twitter ads will receive a 100% match on their spending in equivalent marketing value up to $1 million. It has also partnered with ad tech companies DoubleVerify and IAS on brand safety initiatives amid advertiser exits. These platforms will inform advertisers if their ad is placed around inappropriate content.
Ever since acquiring Twitter, Musk has continuously attempted to renege on his $44 billion acquisition after admitting that the company was experiencing revenue issues and cost challenges. Known for his ambitious nature, Musk will continue to look for ways to generate more revenue for Twitter.
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