Nick Carter warns of the impact of X's new algorithm on the creator economy

Nick Carter, a partner at crypto investment firm Castle Island Ventures, has publicly expressed his concerns about the latest algorithm changes on the X platform. The platform’s introduction of a “For You” feed recommendation algorithm has caused unexpected ripples across the industry. Nick Carter’s point is not just a technical observation, but highlights the structural problems of the entire creator economy.

X’s Algorithmic Strategy and Conflicts with Creators

The recommendation algorithm employed by X prioritizes extending users’ time on the platform. Traditional Twitter allowed users to receive content from creators they followed. However, current algorithms focus on maximizing engagement (likes, retweets, replies), and there is a growing trend of prioritizing content that users are likely to like.

The “Invisible Wall” Between Creators and Audiences

The biggest problem brought about by this change is the loss of connectivity between creators and existing followers. As Nick Carter points out, there is no longer a guarantee that creators will be able to reach their followers consistently. Users are also less likely to see content coming in regularly from the creators they follow. This loss of two-way trust is shaking the very foundation of the creator economy.

Transparency in “Digital Properties” Demanded by the Industry

Nick Carter anticipates that future industry discussions will focus on enhancing algorithm transparency, guaranteeing creators’ distribution rights, and establishing users’ right to receive content. This means that the concept of “digital property” — the creator’s substantial ownership of the audience they build — will be a key theme. There is a need for a shift from an era where platforms unilaterally exercise algorithmic discretion to an era where creator and user rights are more clearly defined.