The crypto community erupted in frustration on August 30 after Brazil’s Supreme Court ordered the suspension of X, the platform formerly known as Twitter. The move has sparked widespread concern that other nations might follow suit, potentially leading to a broader crackdown on social media platforms.
Outcry Among Crypto Enthusiasts
Prominent voices in the crypto world took to social media to express their dismay. Scott Melker, known as “The Wolf of All Streets,” voiced his frustration to his nearly one million X followers, drawing parallels between Brazil’s decision and the U.S. efforts to ban TikTok. “Brazil is absolutely nuts for banning X. But the US is equally nuts for attempting to ban TikTok,” he remarked.
The sentiment was echoed by other crypto enthusiasts, including “MrMoontastic.eth,” who lamented, “Brazil will not follow the bullrun news. Very sad.”
Calls for Decentralization
The suspension has reignited discussions around the importance of decentralized currencies and systems. James Check, lead analyst at Glassnode, hinted at the potential benefits of decentralized assets like Bitcoin in the wake of such censorship. “I wonder if a decentralized, uncensorable, scarce, digital, global monetary asset might be useful for the world right about now,” Check mused, adding, “Is anyone building something like this?”
Fears of a Domino Effect
Some experts worry that Brazil’s actions could set a dangerous precedent. Tech lawyer Preston Byrne warned that if Brazil succeeds in its efforts, other countries might quickly follow. “If Brazil succeeds in beating X, the EU, UK, Australia, Canada will ban X next,” Byrne stated. He added that a victory for X over Brazil would show the ineffectiveness of censorship regimes worldwide, especially against American platforms.
Tensions Between X and Brazilian Authorities
The suspension stems from a standoff between Elon Musk, the owner of X, and Brazilian authorities. Musk refused to appoint a legal representative in Brazil, prompting Supreme Court Justice Alexandre de Moraes to follow through on his threat to shut down X’s operations in the country if Musk didn’t comply by August 29. X’s Global Government Affairs team responded defiantly, stating the platform “would not comply with [Moraes’] illegal orders to censor his political opponents.”
Moraes has been investigating X for allegedly allowing and promoting misinformation related to former Brazilian President Jair Bolsonaro. The situation escalated after X claimed that Moraes threatened its legal representative in Brazil with arrest, leading the platform to announce on August 17 that it was closing its operations in the country, though the service would still remain accessible to Brazilian users.
