The CEO of X, Linda Yaccarino, announced that users will soon be able to exchange and invest directly on the platform, signaling a major step in the plan of Elon Musk to transform the old Twitter into an “all application”.
The main dishes to remember:
- X will soon offer trading and investment features as part of its wider efforts in financial services.
- The new digital portfolio of the platform, X Money, is launched with Visa.
- Regulatory obstacles and persistent skepticism of advertisers pose continuous challenges to the financial recovery of the company.
Speaking at the Cannes Lions advertising festival, Yaccarino described a thrust of financial services which includes digital payments, trade tools and possibly a credit or brand credit card.
“You can come to X and be able to transform your entire financial life on the platform,” she told Financial Times.
“Whether I can pay you for the pizza that we shared last night or make an investment or a business – that’s the future.”
X to allow trade and invest with a visa partnership
At the center of this extension is X Money, a digital payment service and a peer payment service later launched this year in partnership with Visa.
Initially deployed in the United States, the service should take charge of the tilting creators, the purchase of goods and the storage of the value.
However, the transition to finance can lead to a regulatory examination. X will probably be confronted with challenges related to licenses, anti-whiteness compliance and operational surveillance in the financial markets.
The company also browses in a complicated advertising environment. After the acquisition of $ 44 billion in musk in 2022, many advertisers withdrew due to concerns about moderation and content safety.
While Yaccarino said that 96% of former advertising customers have returned, industry skepticism remains.
Yaccarino rejected the Wall Street Journal reports that X threatened the marks in advertising as a “hearing”, citing anonymous sources.
According to the report, several major brands, including Verizon and Ralph Lauren, have agreed with advertising transactions after having faced the pressure. “These are anonymous sources, commentators of random third,” she said.
X is currently involved in an antitrust federal trial against the Global Alliance for Responsible Media and other actors in the advertising industry.
The company accuses the group of coordinating a boycott under the pretension of promoting online security.
Some brands have since been removed from the costume, including Unilever, which resumed advertising in October.
Emarketer projects’ research X will increase to $ 2.3 billion this year, although well below $ 4.1 billion recorded in 2022.
Elon Musk sells x at XAI
In March, Elon Musk sold her social media platform X to his IA company, XAI, in an All-Stock agreement evaluating XAI at 80 billion dollars and X at 33 billion dollars, including $ 12 billion in debt.
The announcement calendar came while an American judge rejected Musk’s request to reject a collective appeal accusing him of having deceived the shareholders during his original Twitter acquisition.
The acquisition has aroused criticism, observers like Adam Cochran of Cinneamhain Ventures warning that the decision strengthens the legal exposure for XAI and raises questions about the structure of the agreement.
Cochran said that musk was overbuilding XAI to absorb X while changing responsibilities and potentially user data within the framework of the IA company, calling “incredibly stupid” assessment.
The PDM Port X claims that users will be able to “soon” negotiate and invest in the platform that appeared first on Cryptonews.
