Are Elon Musk and X about to change the course of DeFi as we know it?
Elon Musk is never far from the headlines!
Ever since his acquisition of Twitter in October 2022, he has rebranded and redefined the social media platform, with some of his changes leaving many puzzled. It’s hard not to be, especially since it’s now simply called ‘X’.
In the midst of these changes, Musk is actively pushing for ‘X’ to evolve into an ‘everything app,’ similar to Asia’s dominant WeChat. He has already obtained money transmitter licenses (MTLs), in three different U.S. states, to incorporate payments into the platform.
This raises the question: ‘Could Elon Musk and ‘X’ change the course of DeFi?’ When you consider Musk’s history with cryptocurrency, it’s easy to see why he might integrate it into ‘X.’
Even if crypto is not integrated into this new update, Twitter already has the background with blockchain, such as crypto tipping for creators and the integration of NFT profile pictures and crypto wallets!
In this new article, we explore the recent headlines featuring Musk and ‘X,’ delve into the reasons for integrating crypto into their new model, and discuss the implications for both markets and investors alike.
Enjoy!
Elon Musk has a soft spot for crypto
While most billionaires of Elon Musk’s age tend to steer clear of cryptocurrencies, it’s evident that the CEO of Tesla is far from your typical billionaire.
Between 2020 and 2022, he frequently shared crypto-related posts on his Twitter account, reaching millions of followers. However, this didn’t come without its share of controversy, with many speculating that he was manipulating prices.
For instance, in 2020, Tesla made a significant purchase of 42,902 BTC, only to later sell approximately 75% of their holdings, which had a notable impact on the cryptocurrency’s price.
To set the stage, let’s revisit some of Musk’s most infamous tweets from over the years. In his trademark style, many of these tweets were lighthearted and humorous, sparking meaningful discussions at the same time — a true blend of entertainment and insight.
1.Doge lover
This tweet was the equivalent of an earthquake, not to sound dramatic.
For context, trading volume on Dogecoin was ramped up to $299,330, with 775 trades per minute being performed. It was only 5 months later that DOGE hit its all time high price of $0.74. The buying power really was behind this meme coin!
2. Tesla accepts Dogecoin
Imagine one of the biggest car manufacturers in the world accepting crypto as payment. Bit of a big deal!
This of course made the price move for a few hours before going back to normal. Was Elon making all the tweets on purpose, or does he actually have a thing for crypto?
3.Come again Elon?!
More on the lighthearted side, this tweet definitely had our eyebrows raised and still does looking back at it today. Seems like on the 20th December 2020 he had crypto on his mind.
It was around this time Bitcoin’s price was steadily rising. In 2020 alone BTC’s price rose by four fold, and continued to rise into the months of 2021 before subsequently crashing down again in January 2022.
So it’s pretty clear that Elon Musk has plenty to say regarding crypto and blockchain. Hopefully it sets the scene for the rest of this article!
What has Musk got in store for Twitter?
In July it was reported that X had filed for money licenses in:
- Michigan
- Missouri
- New Hampshire
This is all part of Musk’s grand plan to transform Twitter into the next WeChat, an all-encompassing ‘everything app.’ This means that Twitter is no longer just a social media platform.
It will now offer e-commerce, news, taxi bookings, and restaurant reservations — all in a single app. This all-in-one approach has the potential to become a Western sensation. WeChat, primarily used in Asian territories, boasts 1.2 billion monthly active users, thanks to its convenient and polished interface.
Back in 2022, during an early meeting with Twitter employees, Musk showed his enthusiasm for his “everything app” concept.
“You basically live on WeChat in China because it’s so usable and helpful to daily life, and I think if we can achieve that, or even get close to that at Twitter, it would be an immense success,”
Before Musk’s takeover and rebranding of Twitter as ‘X,’ the company was reported to be unprofitable, hemorrhaging money. The addition of these new features will enable Twitter to generate income by facilitating business and personal transactions on the platform.
These MTLs are important. Having them allows X to verify transactions and move funds across their platform accordingly.
While some may have initially balked at the idea of a cost associated with the blue checkmark feature, despite its ability to verify the authenticity of a user’s profile, hopefully, people will recognize the value in these upcoming updates!
Could Musk integrate crypto onto X?
Now many are speculating that crypto payments will be featured on the new rendition of Twitter.
Musk has already allowed payments through Tesla, The Boring Company and SpaceX so why not X?
Furthermore, we cannot forget when Doge got featured as the X logo on their site, ultimately causing a 10% price increase. Again proving the force that Musk has on the markets.
If you weren’t aware though it is actually possible to use both Bitcoin and Ether tokens on X. In 2021 a feature was added that allowed users to tip creators on the platform.
At the start of the year users, once they integrated their crypto wallet, were treated to an exclusive NFT profile picture. NFTs also ran rampant on Twitter during the bull run of 2021, with numerous celebrities and public figures flexing their JPEGS.
Dogecoin may make an appearance on X as it’s quite clear Elon Musk has a soft spot for the cute meme!
Having popular cryptocurrencies like Doge, Bitcoin and Ethereum on a site like X will be a massive boost for their market caps. This will ultimately pump more liquidity into the markets causing a potential price surge, maybe not as significant as 2020–21 but we can hope.
Not only that, but it would lend more legitimacy to crypto. As a household name,Twitter has a certain amount of brand awareness and trust, which crypto could share by association if the two do intertwine. And trust is something the crypto industry is severely lacking.
- Speculation is high
Of course since all the news has become public, speculation amongst crypto investors and fans has been doing the rounds online.
Some are optimistic about possible crypto integration, but is the incentive truly there?
Molecule Protocol co-founder, Nick Cote has said, “I think odds are high that a lot of digital assets will be supported. I’d wager we’ll see some clarification on the requirements for which assets are supported in the future.”
Although they did mention too that the average X/Twitter user may not really care for Doge, and that it’s rather just “Cool for the niche DOGE community”.
Other headlines have been pointing towards a potential trading platform on X for cryptocurrencies. Again this could really help to increase the money in the marke tconsidering how much it has toppled since the last bull run.
While the headlines hit mainstream news, Musk immediately shut these ideas down, stating X will not be doing anything of this nature, nor will it be releasing its own token.
This news came around the time that PayPal released their very own stablecoin. Despite PayPal’s notoriety, it doesn’t seem to have been picked up like it was intended by businesses and investors. Still early days though so we will see.
Is this too good to be true?
It’s commendable that Musk and ‘X’ aim to revolutionize Twitter into a more useful app, offering a wide range of utility and online capabilities.
However, where there’s great convenience, there are also potential drawbacks to consider.
For instance, if cryptocurrency is introduced to the platform, it raises concerns about decentralization. ‘X’ would wield some control over users’ crypto holdings once wallets are integrated, and funds are used for transactions.
Billionaires often face criticism for their influence on people’s daily lives, as seen with Bill Gates and Microsoft or Jeff Bezos and Amazon. Musk’s eccentricity is evident and prompts questions about his true intentions. Is his goal genuinely to improve the world? Do we even trust him to do so? And more importantly, what is his version of an improved world?
We’ve witnessed the controversies surrounding Facebook and Mark Zuckerberg, particularly concerning user data and surveillance when they faced Congress a few years ago after the Cambridge Analytica scandal.
While the focus may shift away from advertisers and profiting from user data due to new services, it still leaves us pondering the true motives behind this venture.
Another ongoing issue in DeFi is the lack of knowledge and understanding among the average person. Many remain disinterested, often due to past cryptocurrency scams and a lack of familiarity with the new technology.
To make cryptocurrency thrive on X, substantial efforts are needed. Nevertheless, it’s exciting to contemplate this vision, and Elon Musk’s dedication to innovation is well-established.
What are your thoughts on this? Let us know in the comments.
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