Like many people I’m here because of reddit going to shit. Twitter has increasingly been shit. gycat is shutting down in September. To me it seems like lots of bastions of social media are crumpling, but as a previous active reddit user, I’ve been personally effected. Is this just a frequency illusion or has something changed in the world that has changed the business case of these sites?
So first thing, Twitter is different than the rest. Elmo purchased it and he is doing some things to it that looks crazy.
Reddit CEO admitted that his API changes are inspired by Elmo’s Twitter changes, he likely wouldn’t double down if that didn’t happen to Twitter as well.
Anyway, to show inflation the government increased interest rates. Which made investors thinking, "why should I put my money in this risky business that doesn’t even generate money, when I could purchase government bonds and add long as government doesn’t default I will get 5%?
This actually put pressure on trash startups that don’t generate profits.
Ironically it is more like how much interest have been historically. It’s just that after we had recession it was lowered to not turn it into depression. Then it was kept at nearly 0% until now.
Side note: if your bank still offers still nearly 0% interest rate in your savings account, they are making killing on your money and they are counting you won’t notice, because people got used to those low interest rates.
re: your side note, if I had any money in my bank account I’d be furious!
tl;dr: Blitzscaling only works with cheap money.
I wouldn’t be surprised if pigboy isn’t intentionally tanking news aggregator website to screw over the investors.
So making services worse actually makes them less trash because profits? They werent trash startups, they were made into trash corporations.