Twitter bets on Web3 with rumored crypto wallet as it loses its most active users

Update: Twitter announced on October 27 the launch of “NFT Tweet Tiles”, which will allow users to display NFTs in tweets and to expand links to four marketplaces: Magic Eden, Rarible, Dapper Labs and jump.trade. 

Twitter’s race to Web3

According to information disclosed by Hong Kong-based tech blogger Jane Manchun Wong, Twitter is in the process of developing its own crypto wallet.

“Twitter is working on a ‘wallet prototype’ that supports ‘crypto deposit and withdrawal,'” Wong tweeted on October 25.

Twitter has not officially confirmed such a product, and it is unclear where Wong, who is known for exposing unannounced big tech plans from decoding public codes, got her sources.

The social media giant has been making considerable efforts lately to make its platform more Web3-friendly. Last September, it rolled out a feature that made it possible for users to tip content creators with Bitcoin. In January, it began allowing users to use NFTs as profile pictures. And just last week, Twitter also announced the beta version of its upcoming decentralized social networking project, Bluesky.

But wait, where did the Tweeters go?

The rumor arrives at a precarious time for Twitter, as it approaches a potential US$44 billion buyout by Elon Musk set to close no later than October 28, with talks about the tycoon planning to eliminate nearly 75 percent of Twitter’s staff as part of his deal. The social media platform also seem to be losing its popularity rapidly, as reflected in a recent internal research done by Twitter. The result of the research, reported exclusively by Reuters on October 26, shows Twitter’s struggle to retain its most active users.

The internal document, written by a Twitter researcher and titled Where did the Tweeters Go?, shows that “heavy tweeters” have been in "absolute decline" since the pandemic began.

Heavy tweeters are those who log in to Twitter six or seven days a week and tweet about three to four times a week. According to the Reuters report, they account for less than 10 percent of monthly overall users but generate 90 percent of all tweets and half of global revenue.

Cryptocurrency and NSFW content taking off

On the other hand, the research also found a shift in interests over the past two years among Twitter's most active English-speaking. 

Cryptocurrency and NSFW (“not safe for work”) content, which includes nudity and pornography, are the highest-growing topics of interest among English-speaking heavy users. The report noted that this could potentially make the platform less attractive for advertisers. Twitter is one of the few major social media platforms that permits nudity on its service, and the company has estimated that adult content constitutes 13 percent of Twitter, details on how the figure was calculated were not disclosed. In September, major advertisers including Dyson, Mazda, and Forbes have suspended or removed their ads entirely from parts of Twitter, because their promotions were seen appearing alongside tweets soliciting child pornography.

According to Reuters, the internal research document also noted that the platform’s users were increasingly interested in cryptocurrencies, reaching an all-time high in late 2021. However the study concluded that the topic may not be an area of growth in the future, as interest in crypto has declined since the crash in June.

At the same time, interest in news, sports and entertainment — topics that are desirable for advertisers — is declining among Twitter's most active English-speaking users.