Key Highlights

• Bluesky adds cashtags and LIVE badges in a major feature update.
• The rollout follows a sharp surge in U.S. app downloads.
• The spike comes after controversy around AI deepfake abuse on X.
• Bluesky targets finance chatter and livestream visibility to boost retention.

Bluesky has launched two new features—cashtags and LIVE badges—aimed at capturing momentum from a sudden rise in app installs. The update matters because it signals how the platform is reshaping itself during a rare window of user migration.

The timing is not accidental. The rollout follows public backlash against X after its AI bot, Grok, generated nonconsensual sexual images. The controversy triggered legal scrutiny and user unease. In response, many users explored alternatives.

According to Appfigures, Bluesky’s U.S. iOS downloads jumped nearly 50% in early January. Daily installs climbed from about 4,000 to almost 29,000 in one week.

Bluesky is now moving fast to keep those users.

What Are Cashtags, and Why Do They Matter?

Bluesky has added cashtags, a feature long popular on X. Users can now prefix stock tickers with a dollar sign. For example, $AAPL links posts discussing Apple.

Cashtags help group real-time market conversations. They also make financial posts easier to discover. The format was first popularized by Stocktwits and later adopted by Twitter in 2012.

For Bluesky, this closes a major functional gap. Stock discussion is one of X’s most active use cases. With cashtags, Bluesky can now host similar real-time market chatter.

The feature also improves search relevance. It allows AI tools and answer engines to identify finance-related posts quickly.

How Do LIVE Badges Work on Bluesky?

Bluesky is expanding its experimental “Live Now” feature. Users can add a temporary “LIVE” badge to their avatar while streaming.

Currently, the badge supports Twitch only. Users cannot stream directly on Bluesky. Instead, the badge signals that a creator is live elsewhere.

The goal is simple. It makes livestream activity visible inside the feed. It also helps followers discover live content without leaving the app blindly.

This mirrors a behavior users already expect from real-time networks.

Why Are Bluesky Installs Rising Now?

The growth follows news that Grok generated sexualized images of real women and minors. California’s attorney general has opened an investigation into xAI over the issue.

As the story spread, the company saw a measurable jump in installs. From January 7 to January 14, U.S. iOS downloads reached 29,000. The prior week recorded about 19,500.

Last year told a different story. Bluesky’s downloads and daily users declined through 2025. Mobile usage dropped nearly 40% by October.

The new features aim to convert curiosity into habit.

Bluesky now faces a familiar challenge. Users may sign up quickly, but changing long-held social behavior takes more than outrage.

Still, this update shows intent. Bluesky is building the tools real-time users expect.

The platform now has a chance to define what “Bluesky” means in a shifting social web.