Elon Musk’s new X payment has sparked an uproar among crypto enthusiasts

Billionaire Elon Musk has announced plans to charge new users on his social media platform X (formerly Twitter) in an effort to combat spam and scam bots.

However, this move has caused a lot of skepticism in the crypto community.

Since buying Twitter in 2022 for $44 billion, Musk has repeatedly faced challenges posed by fake accounts and automated bots. On April 15, Musk explained on X that the platform would charge a small fee to offset its bot bills. He pointed out that this fee could soon be applied to basic activities like posting, replying and bookmarking.

“Unfortunately, a modest fee for new user write access is the only way to stop the constant onslaught of bots. A spoofing attack also uses an existing namespace, resulting in many good handles being taken,” Musk wrote.

Despite these efforts, including an experimental ‘Not A Bot' subscription that costs $1 for new users in New Zealand and the Philippines, skepticism remains. ZachXBT, an on-chain hacker, has highlighted the persistence of scams, saying the payment may not stop scammers. He emphasized that fraudsters often pay large amounts to obtain verified status, suggesting that the low entry fee may not deter them.

In addition, some fraudsters use government identification badges. ZachXBT says there's an entire black market for it.

“There are hundreds of business verified scam accounts every week that scammers are paying thousands of dollars to,” ZackXBT said.

Read More: Who Is ZachXBT, The Crypto Sleuth Scam Exposer?

Additionally, crypto influencer Ansem criticized the plan's effectiveness, stating that stronger action is needed to tackle the problem effectively. He believes that while the fee may reduce casual spam, it will do little to stop well-funded fraudsters and organized crime rings who may treat it as a cost of doing business.

“These scammers are publishing endless daily. 5 figs+ they don't offer to pay a cent to make it,” Ansem wrote.

In addition, DeFi researcher Ignace Musk pointed out that Musk's approach prioritizes financial gain rather than solving the problem. Since taking over Twitter, Musk has initiated various measures to reduce costs and increase the platform's profitability. It specifically introduced an $8 fee for a verified X account.

Read more: Crypto Social Media Scams: How to Stay Safe

Meanwhile, Musk's other business, Tesla, is undergoing a major financial overhaul. Tesla has announced plans to cut its workforce by “more than 10 percent” amid declining demand for electric vehicles. This decision aims to eliminate duplication of roles and streamline operations.