Elon Musk had a tough year while maintaining his ambitious social media venture, X, aka Twitter. In 2023, while executing the vision he had to make it into ‘Twitter 2.0’, Elon faced a financial hit after advertisers started gradually leaving the platform after he completed the historical $44 billion deal.
Since then, Elon Musk has tried to compensate for the scaling down of advertising revenue by tweaking policies and introducing new features to support the dwindling revenue. However, as per his admission, it is difficult to change the advertising revenue model as it is the most important channel of the platform’s revenue. The billionaire devised another plan for making X into an everything app. After introducing $Cashtags, Musk will begin the payment services on the microblogging site. But there will be no cryptocurrency services on the platform.
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Elon Musk Will Not Allow Cryptocurrency With Payment Services On X
In 2022, Elon Musk gave an update that buying Twitter, aka X, is a step forward to creating everything app. However, the urgency of it is felt by the company as the revenue is dwindling and it has become increasingly difficult to keep the platform afloat.
Musk’s plan to make X into an everything app came after China’s WeChat. The app allows users to book tickets and cabs, order food, and make payments.
Elon Musk is now aiming to launch payment services through X. In a discussion with Cathie Wood on X’s ‘Spaces’, Elon Musk said that he is ready to launch the payment services on X, but the licensing and bureaucracy issues have hindered the launch. Launching a payment service will help Elon expand the revenue streams on the microblogging site.
However, cryptocurrency traders will be disappointed as the new payment service rollout will not include the exchange of any cryptocurrencies. When he was asked about it, the Tesla owner said, “I don’t spend a lot of time thinking about cryptocurrency. Hardly any at all.”
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The Platform Is Hit Due To Dwindling Advertising Revenue
In the past few weeks, Elon Musk’s X has been hit financially. It all started when Musk engaged in an anti-Semitic post that perpetuated the ‘Great Replacement Theory’. Since then, advertisers have been pulling their advertisements from X. Companies like IBM, Apple, Disney, and others have already stopped promoting their products on the platform.
The advertisers’ exodus increased after a report by Media Matters for America pointed out that Elon Musk’s X has been placing advertisements next to pro-Hitler and pro-Nazi content. The year 2023 displayed a poor financial performance of X. The company may be heading toward bankruptcy, and its main source of revenue, advertising, has hit low compared to 2022.
A report by Bloomberg suggested that Elon Musk’s reign has caused a decline in advertising revenue from $4 billion in 2022 to $2.5 billion in 2023. The ad sales comprise 70–75% of the revenue. The gross revenue of X is projected to be $3 billion, including the subscription and licensing deals.
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