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Ok this is the thing I’ve been telling people X would do from early on. The idea here is to provide enough information to turn the majority of active users from
by happytiger 3y ago
Ok this is the thing I’ve been telling people X would do from early on. The idea here is to provide enough information to turn the majority of active users from social media users to payment platform users, thereby changing the platform valuation incredibly and creating one of the most valuable companies in the world basically overnight. Note that the “bot verification” is merely a thinly veiled KYC check, which together with AML will set X up as a payment system provider and eventually the rollout of an MTL. Very smart business move if it works.
They don’t need that many active users to transition successfully either, as long as it’s got scale.
Just look at the monthly active users and consider what a verified payment user like square or PayPal is worth to company valuation and you’ll see why 43B was worth it. It was the largest available userbase to roll this business model out onto.
- howenterprisey 3y agoOK, this is the best explanation I've seen yet of the purchase, but still... nobody signed up for Twitter for this purpose, they just wanted to tweet. This plan will kick off all the users who don't want to do the new verification things. In that sense it's totally disrespectful of what Twitter actually provided.
- happytiger 3y agoThat’s why he’s paying people for tweeting. In order to get the money you have to KYC.
- datadrivenangel 3y agoAML/ MTL? KYC = Know your customer.
- stvltvs 3y agoAnti Money Laundering
- happytiger 3y agoExactly. https://www.ffiec.gov/press/PDF/FFIEC%20BSA-AML%20Exam%20Manual.pdf https://www.ffiec.gov/press/PDF/FFIEC%20BSA-AML%20Exam%20Man...
- fragmede 3y agoMoney Transmission License, eg Venmo needs one of these for each US state they want to do business in.
- fckgw 3y agoDo you believe there's a large enough base to willingly hand their financial information over to Musk? I just can't see it happening, not a chance.
- happytiger 3y agoKYC validation is typically rolled out to receive payments (or airdrops) as an adoption strategy. People will give up their information to get money — it’s what both Amazon and stripe did precisely and it’s a common strategy.
- orwin 3y agoI think this is a mistake. Even registering in a website is a pain to me. If i have to add a credit card AND and ID check? I would never have used twitter(not that i used it much, it was like once every month, maybe twice a week at the beginning of Covid/Ukraine invasion).
- happytiger 3y agoWould you verify your phone number to secure your account? You don’t need much to verify an account and do a KYC/AML verification.