Elon Musk's Superfans Send $25 via X Money...Is Dogecoin (DOGE) Payment Expectation Revived?

▲ Elon Musk, X Money, Dogecoin (DOGE), Cryptocurrency Payment, Blockchain Remittance/AI Generated Image

As X Money expanded to U.S. users, even fans began sending money to Elon Musk. At the same time, the speed at which X is transforming into a financial platform has emerged as a new point of interest in the market.

According to the cryptocurrency media outlet TheStreet on June 26 (local time), X Money, the payment service embedded in X (formerly Twitter), was opened to more U.S. users on June 25. As the service expanded, some users began sending small amounts of money to Musk simply to test the feature.

One user, Corey, stated, "Call me an idiot. I just used X Money to send the world's richest man, Elon Musk, $25 directly for no reason. I just sent it because I could." Musk replied to the post with "Tks." TheStreet reported that Musk was the first individual to surpass $1 trillion after SpaceX's IPO on June 12, with a net worth estimated at approximately $1.23 trillion as of mid-June.

X Money aligns with Musk's vision for a financial platform, which he conceived in 1999. At the time, Musk co-founded X.com, a comprehensive bank aspiring to be commission-free, investing $12 million of his own money. X.com later merged with Peter Thiel's Confinity, and after Musk was ousted from the company in 2000, it was renamed PayPal. TheStreet evaluated X Money as the closest form to the product Musk wanted to create 25 years ago.

X Money launched as a dollar-based payment app closer to Venmo or Cash App than a cryptocurrency wallet. Based on its partnership with Visa, it processes peer-to-peer transfers almost in real-time via Visa Direct and offers FDIC-insured deposits up to $250,000 through Cross River Bank. It also presents features such as an annual yield of 6% on balances, a metal Visa debit card engraved with the X account name, 3% cashback, and exemption from international transaction fees. X holds money transmitter licenses in over 40 states and aims to handle creator tips, bill payments, in-app purchases, and user-to-user transfers within the platform, targeting approximately 600 million monthly users.

However, questions have been raised about the sustainability of the 6% yield. Ken Tumin, founder of DepositAccounts, viewed the interest rate as promotional, tied to limited beta users and conditions for direct deposit of salaries. He stated, "I expect the interest rate to fall to competitor levels over time." Tumin also pointed out that X Money deposits being held by partner bank Cross River Bank, rather than X itself, could be riskier than a direct banking structure.

Expectations for Dogecoin (DOGE) payments have also not yet materialized. Musk has supported Dogecoin on several occasions in the past, and Tesla and The Boring Company began accepting Dogecoin payments in 2022. However, Musk has not confirmed the introduction of cryptocurrency for X payments, and X Money was launched as a fiat-only product. TheStreet reported that while the company has opened up the possibility of broader asset support in the future, Dogecoin integration has not yet been confirmed.

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