- Elon Musk’s proposed nominal monthly fee on X aims to curb bot-driven cryptocurrency scams.
- The monthly fee is designed to make the operation of scam bots economically unfeasible on X.
- The paywall could serve as a model for other social media platforms grappling with bot-related cryptocurrency fraud.
Billionaire entrepreneur Elon Musk, who acquired Twitter and rebranded it as X, is contemplating the introduction of a nominal monthly fee for users. The fee aims to combat the issue of bots on the platform, which have been particularly problematic in the realm of crypto scams. This decision was influenced by a live-streamed conversation with Israeli Prime Minister Benjamin Netanyahu, who suggested that a paywall could be an effective measure against antisemitism and bot activity.
According to a Los Angeles Times article, social media platforms like X, Instagram, and TikTok are frequently exploited for cryptocurrency-related fraud. A separate study by Indiana University Bloomington, reported by Wired on August 21, 2023, identified the presence of a botnet on X.
The issue of bots is not limited to X; it is a widespread problem affecting various social media platforms, including Instagram and TikTok. These bots are especially troublesome in the cryptocurrency sector, where they are used for scams and misinformation.
According to Chainalysis’ 2022 Crypto Crime Report, illicit crypto wallets worldwide received $14 billion in 2021, marking an 80% increase from 2020. Previously, the Federal Trade Commission had also revealed that approximately $2 million was illicitly taken from consumers during a span of seven months in 2020 and 2021. The scams were conducted using counterfeit Elon Musk accounts on Twitter to promote fraudulent cryptocurrency schemes.
Musk has not disclosed the exact amount of the proposed fee but mentioned it would be a “small amount of money.” The fee is designed to make the operation of bots economically unfeasible. This is particularly relevant given that X has 550 million monthly users generating between 100 to 200 million posts every day, although it remains unclear if these figures include bot activity.
The proposed fee could serve as a model for other social media platforms that are also grappling with the challenges posed by bot activity and scams. Its effectiveness in curbing bot-related crypto scams remains to be seen.
