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Rumors Circulating about Elon Musk’s Cryptocurrency Strategy – Could Dogecoin Payments Soon Arrive on X? The Truth Unveiled
There is speculation surrounding the intentions of Elon Musk, a prominent figure in the financial world, regarding Dogecoin. How valid are these claims?
Author:
Mete Demiralp
18.06.2024 – 18:03
Update:
6 seconds ago
0
Elon Musk, the mastermind behind the social media platform X, is in the process of transforming the platform into a comprehensive application. A crucial aspect of this grand vision involves the integration of a payment network within the primary social networking service.
While specific details about this endeavor remain elusive, recent filings with state authorities shed light on the company’s trajectory. These previously undisclosed documents unveil plans for a payment feature akin to Venmo. Through this functionality, users will have the ability to deposit funds into their X accounts, conduct transactions with other users or businesses, and even make purchases at physical retail outlets.
Musk has emphasized the necessity for X to diversify its revenue sources beyond advertising, which has traditionally been the main source of income, comprising over 90% of sales. He has also hinted at the potential for X to evolve into a major financial institution globally. The documents indicate that X does not intend to impose substantial fees for payment services. Instead, the company has conveyed to regulators that the provision of payment services is a strategic move aimed at enhancing user engagement and interaction within the app.
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The financial insights shared with regulators also shed light on the operational challenges the company has faced since Musk assumed control in late 2022. It is revealed that X generated $1.48 billion in revenue in the first half of 2023, marking a decline of around 40% compared to the corresponding period in 2022 prior to Musk’s acquisition. The company reported a loss of $456 million in the first quarter of 2023.
Musk’s interest in cryptocurrencies is widely known. Tesla, the automotive giant, once held approximately $1.5 billion in Bitcoin on its balance sheet and briefly permitted customers to purchase Teslas using Bitcoin. However, this option was swiftly suspended, and the company has since divested a significant portion of its Bitcoin holdings.
Despite Musk’s support for Dogecoin, which he humorously refers to as a “scam,” X users seeking to transfer their Dogecoin assets to their X wallet may have to exercise patience. Earlier this year, the company informed regulators in Maine that it currently has no intentions to facilitate the sending and receiving of virtual currencies.
*This does not constitute investment advice.
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