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Elon Musk, the tech mogul, has turned down the possibility of launching its own cryptocurrency token for Twitter or the ‘X’ platform. This claim was not part of an official announcement, but rather a response to a user’s post on Twitter.
A Twitter user, @DogeDesigner, who has previously interacted with both Musk and Linda Yaccarino, the current CEO of ‘X’, warned that neither Musk nor ‘X’ had released crypto tokens. This warning came in a tweet accompanied by headlines from news articles falsely claiming such a launch had taken place. Musk’s answer was simple and unequivocal: “And we never will.”
And we never will
— Elon Musk (@elonmusk) August 5, 2023
While this statement is a clear rejection of the idea of a cryptocurrency endorsed by Twitter, especially in the midst of an intensive rebranding process, it does not unequivocally reject the idea of future “X” app functionalities associated with cryptocurrencies. Musk’s past ties to digital assets also cast a shadow of uncertainty.
Musk’s enthusiasm for Dogecoin (DOGE), a memecoin initially created as a humorous nod to the often serious crypto community, is no secret. The billionaire acquired Twitter for $44 billion last year and immediately replaced his famous blue-bird logo with the Shiba Inu dog image synonymous with Dogecoin, a move that caused the token’s value to rise by 20% and led to a $258 billion lawsuit against Musk for alleged insider trading and extortion.
Despite his seemingly contradictory actions towards the crypto community over the years, including working with Doge developers to create an eco-friendly, affordable alternative to Bitcoin, Musk’s final rejection of a TwitterCoin or XCoin leaves the door ajar for possible future involvement in cryptocurrency.
“Project X” goes way back
Earlier we reported on the ‘X’ project that it has always held a special place in Musk’s aspirations. He revealed last year that he has an expansive vision for X.com or X Corporation, although he did not flesh out this grand vision. He suggested at Tesla’s annual shareholder meeting that Twitter could accelerate the realization of this vision by three to five years.
In the era of the first dotcom bubble around 1999, Musk co-founded one of the first internet banks, the original X.com. His initial venture, Zip2 – a directory of local businesses – had recently been purchased by Compaq for more than $300 million, making Musk a multimillionaire. Musk invested most of his after-tax earnings from the sale of Zip2, about $12 million, into X.com, foreseeing its evolution into a comprehensive financial services platform.
the core hub where all transactions take place
The original X.com merged with its competitor Confinity in 2000 and changed its name to PayPal the following year. After eBay bought it for $1.5 billion in 2002, Musk received a significant windfall of about $180 million, which he used to invest in Tesla, the electric vehicle startup, and to found SpaceX, his rocket company. .
Musk has always maintained that X.com had the potential to serve as “the core hub where all transactions take place”. He even told his biographer, Ashlee Vance, that he had considered buying back PayPal.
Musk’s ambition to turn Twitter and X.com into a payments “super app” trumps PayPal’s recent aggressive growth strategy. In a pitch deck to investors earlier this year, Musk outlined a plan for Twitter that would enable peer-to-peer payments, similar to PayPal, and switch to a subscription-based model instead of relying on ads. By 2028, he predicted that more than 100 million users would subscribe to ‘X’.
Regarding the prospect of enabling crypto payments, Musk revealed in an investor pitch deck that he aims to generate approximately $1.3 billion in payment revenue from Twitter by 2028. However, experts have questioned Twitter’s ability to compete effectively, particularly in the US market, which is dominated by powerful rivals such as Venmo, Cash App and Zelle. In addition, Twitter’s entry into the payments industry is expected to receive significant regulatory scrutiny, especially given Musk’s controversial decision to cut more than half of its platform staff, which has raised questions about the platform’s ability to meet compliance requirements. comply.
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