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Criticism of X’s New Annual Fee Requirement
Crypto commentator ZachXBT recently criticized the new annual fee requirement imposed by X on new accounts. ZachXBT took to Twitter on April 15 to express his concerns, stating that the new policy would not effectively address the issue of bot account-driven scams. He highlighted the influx of “hundreds of business verified scam accounts” appearing on the platform weekly, with scammers reportedly willing to pay significant sums for these fake accounts.
ZachXBT clarified that his criticism was not directed towards Elon Musk’s management of X but rather towards the platform’s understanding of the black market for verified accounts. He cautioned that the new policy could hinder user growth and questioned whether X comprehensively grasped the scope of the problem.
Evidence of Scam Accounts
To illustrate the prevalence of scam accounts, ZachXBT shared a screenshot featuring numerous fake profiles promising rewards related to the interoperability protocol Wormhole. Many of these fraudulent accounts displayed gold checkmarks obtained through X’s existing verification process.
Introduction of the Annual Fee
X introduced the annual fee requirement on April 15 as part of its efforts to combat spam and fraudulent activity on the platform. New users are now mandated to pay a small annual fee before engaging in activities such as posting, liking, bookmarking, and replying.
The company initially tested this fee-based model, known as “not a bot,” in New Zealand and the Philippines in October 2023, charging users a $1 annual fee. The recent update extends this policy to new users across different regions.
Elon Musk, serving as X’s CTO and executive chairman, confirmed and defended the necessity of the new fee requirement. Musk asserted that the fee grants users “write access” on the platform and serves as the primary method to combat the proliferation of bots. He linked the bot issue to artificial intelligence and troll farms but did not explicitly mention the prevalence of crypto scams, which have inflicted considerable financial losses on users.
Data indicates that crypto scams remain highly lucrative, with the US Federal Trade Commission reporting that social media scams generated $2.7 billion over a multi-year period. Crypto scams accounted for 53% of social media scams in the first half of 2023, underscoring the importance of robust measures to address fraudulent activities on online platforms.
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