The social media platform formerly known as Twitter obtained a Rhode Island Currency Transmitter license. It already has a federal money transmitter license. However, it still has to go state by state to obtain regional licenses.
A money or currency transmitter license allows companies to hold and send money on behalf of their clients. “Money transmitters” like PayPal or CashApp are third-party apps that function differently from truly decentralized cryptocurrencies like Bitcoin, which does not require a third party to function.
The new state license added fuel to speculation that Elon Musk plans to turn “X” into a platform for holding, trading, buying, and selling with cryptocurrencies like Dogecoin. However, it hasn’t had the effect on Dogecoin’s price that past comments and actions from Elon Musk have had. Traders may be taking a “wait and see” attitude to see what Musk actually does with it.
Musk has spoken of turning X into an “everything app” that can be used for everything from ordering food delivery to booking a hotel, something that people typically have to download multiple apps for.
“Elon’s dream is to make Twitter, aka X, into this super global DApp that can be used for everything … including having a crypto wallet and being able to conduct crypto payments,” the founder of CryptosRUs, who goes by “George,” told The Street.
Historically, adoption of crypto has been good for digital asset markets through a combination of people actually using it to buy stuff and gaining greater visibility for digital assets, something that George obliquely referred to: “Any kind of announcement of that magnitude will definitely be very good for the entire market.”
Elon Musk managed to buy back the X.com domain from PayPal and has been squatting on it until now. He had originally envisioned X.com as an online financial institution that could provide an alternative to traditional brick-and-mortar banks. Now his vision may be back in force with the rise of digital assets, which may help make it a reality.
Several probably-fraudulent “X Tokens” have popped up on decentralized exchanges (DEX) since Elon Musk changed Twitter’s name to X. Digital asset insiders like crypto fund DFG founder James Wo warned against touching them despite the chance of big returns if they get pumped by pump groups.
“Meme coins are huge parts of the crypto trading landscape, whether we like it or not. … Meme trading is a risky way to try to seek excessive return.”
Despite the rise of unofficial-at-best “meme coins,” Musk has denied plans to introduce a native token for X.
Several other platforms that introduced a native token have failed and so have companies that used the native tokens to pad their books. The FTX exchange went bankrupt and dragged down Alameda Research, which had billions of dollars’ worth of FTX’s native FTT token in its ledger and was allegedly trading with FTX users’ funds. Celsius Network’s CEL token cratered in value now that Celsius Network went bankrupt. So Elon Musk may reasonably hesitate to do much more than add already-existing digital assets that are already widely used to a future “Everything App.”
A future exchange and marketplace for cryptocurrency users may already be in the works as Elon Musk does his best to accelerate the “Everything App.” However, any token claiming to be the official “Twitter” or “X” token is not to be trusted. Elon Musk does not plan to launch a native token for X.