The CEO of X, Linda Yaccarino, has revealed plans for users to soon engage in trading and investing directly on the platform. This move is a significant part of Elon Musk’s vision to transform the former Twitter into a comprehensive “everything app.”
Important Points:
- X is set to introduce trading and investment options as part of its expansion into financial services.
- The platform’s upcoming digital wallet, X Money, will be launched in collaboration with Visa.
- Challenges from regulations and ongoing advertiser doubts continue to threaten the company’s financial recovery.
During her speech at the Cannes Lions advertising festival, Yaccarino detailed a financial service initiative that will include digital payments, commerce features, and possibly a trademarked credit or debit card.
“You’ll soon be able to manage all your financial transactions right here on X,” she shared with the Financial Times.
“Whether it’s paying for the pizza we shared last night or making an investment or a trade—that’s what’s coming.”
X to Enable Trading and Investment with Visa Collaboration
This growth is centered around X Money, a digital wallet and peer-to-peer payment service set to launch later this year in partnership with Visa.
The initial rollout will occur in the U.S. and aims to facilitate features like tipping creators, purchasing merchandise, and holding funds securely.
However, this entry into finance may attract regulatory scrutiny. X is anticipated to confront challenges related to licensing laws, anti-money laundering regulations, and managing financial operations.
The company is also dealing with a challenging advertising landscape. Following Musk’s $44 billion purchase in 2022, many advertisers scaled back due to concerns about content moderation and safety.
While Yaccarino mentioned that 96% of previous advertising clients have returned, industry skepticism still lingers.
Yaccarino refuted claims from the Wall Street Journal that X coerced brands into advertising, labeling it as “hearsay,” and referring to unnamed sources.
The reports suggested that notable brands like Verizon and Ralph Lauren agreed to advertising deals after experiencing pressure. “These are unnamed sources, random comments from third parties,” she stated.
X is currently facing a federal antitrust lawsuit from the Global Alliance for Responsible Media and other players in the advertising industry.
The company claims that this group is orchestrating a boycott under the guise of promoting online safety.
Some companies have been removed from the lawsuit, including Unilever, which resumed its advertising in October.
Research from eMarketer suggests X’s revenue is expected to reach $2.3 billion this year, a decrease from the $4.1 billion recorded in 2022.
Elon Musk Transfers X to xAI
In March, Elon Musk transferred ownership of his social media platform X to his AI company, xAI, in an all-stock transaction that valued xAI at $80 billion and X at $33 billion, which includes $12 billion in debt.
This announcement coincided with a court ruling rejecting Musk’s attempt to dismiss a class-action lawsuit alleging he misled shareholders during his original acquisition of Twitter.
The move has drawn criticism, with analysts like Adam Cochran from Cinneamhain Ventures suggesting it increases legal risk for xAI and raises questions about the legitimacy of the deal.
Cochran argued Musk overvalued xAI to absorb X while offloading liabilities and potential user data to the AI company, deeming the valuation “insanely illogical.”
The article on this topic, “X CEO Says Users Will ‘Soon’ Be Able to Trade and Invest on the Platform,” was first published on Cryptonews.
