What Kind of Impact Will Twitter's New Logo, X, Have?

As the bird takes flight, Elon Musk unveils Twitter's new logo, the X. 

The Update:

Twitter's logo has been updated. 

Tweets will now be referred to as Xs.

Following through with a dramatic revamping of the social media site he acquired for $44 billion last year, Elon Musk has revealed a new "X" logo to replace Twitter's famed blue bird.

On Monday, the X appeared at the very top of the desktop version of Twitter, while the bird continued to reign supreme on the mobile app. Meanwhile, on Monday, employees at Twitter's San Francisco offices were observed dismantling the company's distinctive bird and emblem without the necessary permissions and without taping off the pavement to protect passersby in the event that anything dropped.

Possible Impacts of X

Potential Confusion Among Existing Customers: The abrupt change of a Twitter's corporate image - including its name, logo, and overall brand identity - can confuse existing customers who have associated the old brand identity with the company's products or services - the bird, the "tweet", etc.

Risk to Customer Loyalty: Twitter has established its brand identity and built a strong customer loyalty over time. Changing this brand identity might risk losing some loyal customers who have a strong attachment to the previous brand identity.

Effect on Advertising Revenue: Since a major chunk of Twitter revenue was made from advertising, the rebranding could initially lead to a decrease in ad revenue due to the aforementioned potential confusion and loss of customer loyalty. 
However, if managed well, the X rebranding could lead to a boost in revenue in the long term as the new brand gains recognition and acceptance.

Potential Loss of Recall Value: The recall value of a Twitter is its recognizability to customers. A rebrand to X might negatively impact the recall value of the brand. X would need to invest time and resources to establish the new brand identity and increase its recall value.

Implication on Twitter Customer Perceptions and Brand Image: Depending on how the rebranding is perceived, it could either positively or negatively affect the company's brand image. For instance, if customers perceive the rebranding as a positive evolution, it could improve the brand's image. Conversely, if it's perceived as a cover-up or an arbitrary change, it might harm the brand image.

Possible Increase in Engagement: If the rebranding is seen as a positive and innovative step forward, it might increase engagement with both existing and new users. This could result in an enhanced social presence and increased user activity, leading to higher advertising revenues.

Necessity for Strategic Rebranding: The X rebranding must be handled strategically to ensure the company continues to reflect its core mission and values. A well-executed rebranding can reinforce the position of X in the market, and make it more relevant and appealing to its target audience.

Increased Competition: In the age of "crowdculture", where digital crowds serve as effective innovators of culture, rebranding needs to be done in such a way that it stands out and makes an impact. Otherwise, the rebranded identity might struggle to compete in the crowded social media landscape.

Whether X makes the cut, only time will tell (a couple of weeks or  months can surely give an indication)