Elon Musk’s New X Fee Sparks Outcry Among Crypto Enthusiasts

Billionaire Elon Musk has announced plans to charge new users on his social media platform, X (formerly Twitter), aiming to combat spam and scam bots.

However, this move has sparked considerable skepticism within the crypto community.

After purchasing Twitter for $44 billion in 2022, Musk has frequently addressed the challenges posed by fake accounts and automated bots. On April 15, Musk explained on X that the platform would charge a small fee to tackle the bot accounts. He indicated that this fee might soon apply to basic functions such as posting, replying, and bookmarking.

“Unfortunately, a small fee for new user write access is the only way to curb the relentless onslaught of bots. The onslaught of fake accounts also uses up the available namespace, so many good handles are taken as a result,” Musk wrote.

Despite these efforts, including a trial ‘Not A Bot’ subscription that charges $1 for new users in New Zealand and the Philippines, doubt remains. On-chain sleuth ZachXBT highlighted the persistence of scam operations, noting that the fees might not stop scammers. He stressed that scammers often pay significant amounts to obtain verified status, suggesting that a small entry fee is unlikely to deter them.

Moreover, some scammers also use government account badges. ZachXBT claims that there is an entire black market for it. 

“There are hundreds of business verified scam accounts every week which scammers pay thousands of dollars for,” ZachXBT stated.

Read more: Who Is ZachXBT, the Crypto Sleuth Exposing Scams?

Furthermore, crypto influencer Ansem criticized the plan’s effectiveness, arguing that stronger measures are necessary to address the problem effectively. He believes that while the fee might reduce casual spam, it does little to stop well-funded scammers and organized crime rings capable of treating such costs as business expenses.

“These scammers are printing infinite daily. They do not give af about paying pennies to make 5 figs+,” Ansem wrote.

Additionally, DeFi researcher Ignas suggested that Musk’s approach might prioritize financial gain over solving the issue. Since Musk took over Twitter, he has initiated various steps to cut costs and increase the platform’s profitability. Notably, he introduced the $8 fee for a verified X account.

Read more: Crypto Social Media Scams: How to Stay Safe.

Meanwhile, Musk’s other business, Tesla, is also undergoing significant financial adjustments. Amid a downturn in electric vehicle demand, Tesla has reportedly announced plans to reduce its workforce by “more than 10 percent.” This decision aims to eliminate duplication of roles and streamline operations.