August 3, 2023
Elon Musk is once again attempting to prove his vision right by rebranding Twitter into “X.” This ambitious move comes as no surprise given Musk’s history of wanting to rename PayPal and venture into internet banking back in 2000. Despite the previous failures, he remains undeterred in his quest to reshape the popular social media platform.
Musk’s interest in the letter “X” goes back to his early days with PayPal when he founded X.com, a financial services company. Although it later merged with PayPal, Musk’s desire to rebrand the payment service as “X” was met with opposition from key figures, like David Sacks, who recognized the importance of branding in the financial sector.
Now, Musk’s focus is on transforming Twitter into a super app akin to China’s WeChat, consolidating social media, banking, and digital payments in one platform. However, this endeavor faces significant challenges. The financial industry in the US is highly regulated, with traditional banks and the Federal Reserve already adopting technological innovations.
Moreover, the cooperation of app stores, mainly Google and Apple, is crucial for the success of a super app. Yet, both companies may see it as a potential threat to their own payment services, leading to possible antitrust issues.
Musk’s handling of Twitter has been controversial, as his changes in moderation and questionable content policies have scared away advertisers. This shift has led to a fire sale of Twitter ads, impacting the platform’s revenue.
The sources for this piece include an article in TheVerge.
