More chaos over Musk’s ‘Twitter Blue’
Fake tweets cause stock prices to crash
The new verification system has triggered a wave of fake news on Twitter. This also had an impact on the stock market. Due to the fake tweets, the stock prices of several companies crashed.
The new verification system has caused chaos on Twitter.
It only cost $8 – but it could have caused billions in damage: the blue tick on Twitter.
By using a small symbol next to the name, companies and famous people can show that the account is real. Elon Musk, 51, recently the proud owner of Twitter, monetized the verification icon after his takeover. $8 could buy a blue tick.
Chaos ensued shortly after: Fake accounts bought verification and tweeted under the names of real companies. Fake Nestlé wrote: “We steal your water and sell it back to you.”
Minus 5 percent because of a fake tweet
The American arms company Lockheed Martin also became a victim of a fake account. Fake Lockheed Martin tweeted with a blue verification check: “We will begin halting all arms sales to Saudi Arabia, Israel and the United States pending further investigation into their human rights abuses.”
The tweet was visible for several hours and was shared thousands of times. This did not go unnoticed on the stock exchange either. Lockheed Martin shares were down about 5 percent at one point. With a market capitalization of more than 120 billion, the fake tweet was expected to cost the arms manufacturer several billion.
Pharmaceutical company Eli Lilly from the United States also paid dearly for the blue tick. A fake company account tweeted under the company’s name: “We are pleased to announce that insulin is now free.”
Suspended system $8
The official apology from Eli Lilly came too late – as a result, the stock fell almost five percent. The fallout was only partly to blame for the fake tweet. As “Spiegel” writes, on Thursday morning it became clear that the pharmaceutical company had to pay 176.5 million dollars in the procedure for correction.
Twitter suspends $8 system after wave of fake news. The US consumer protection agency FTC has drawn attention to the short message service. Whether the purchasable tick will return in the future despite the disaster remains to be seen. (obf)