Elon Musk’s X Considers Selling Inactive Usernames starting at $10K Per Account

X (formerly Twitter) is reportedly exploring the sale of inactive usernames to Verified Organizations, with starting prices set at $10,000.

However, this potential move, which has yet to be officially confirmed, is being developed based on internal code leaks. As X faces mounting pressure from European regulators, the platform’s revenue strategies could be significantly impacted by legal challenges, particularly under the Digital Services Act.

A New Revenue Model for X

In an effort to boost its finances, X is reportedly planning to sell dormant usernames to Verified Organizations, who currently pay a $1,000 monthly fee for the blue verification checkmark.

The $10,000 starting price for these usernames would allow businesses and organizations to acquire premium digital real estate on the platform. However, the details of this pricing model are still speculative, based on code findings rather than public announcements.

The move to monetize unused usernames follows Elon Musk’s acquisition of the platform and his efforts to stabilize X’s financial position, which has faced significant challenges since the deal.

Musk himself has acknowledged that X is “barely breaking even,” and the company has been grappling with a substantial debt burden of around $13 billion, which in a surprising off-market takeover from Musk’s AI venture xAI have now moved to this entity.

X’s latest plans are seen as an attempt to generate more revenue as traditional methods, like advertising, have proven less effective.

EU Regulatory Challenges and $1 Billion Fine

X’s new monetization strategy comes at a time of heightened regulatory scrutiny. The European Union is preparing to fine X over $1 billion for violations of the Digital Services Act (DSA), a law that governs how platforms must manage harmful content and ensure transparency in algorithmic decision-making. This investigation, which began in late 2023, is set to become a significant obstacle for X as it seeks to move forward with new revenue models.

Under the DSA, platforms like X face stringent obligations to combat illegal content, ensure transparency, and provide users with greater control over their data. Non-compliance with these regulations could result in steep penalties, including fines of up to 6% of global revenue.

The EU’s investigation into X’s practices will play a crucial role in shaping the platform’s future, potentially affecting the viability of its monetization strategies like the sale of inactive usernames. The EU’s scrutiny over X’s content moderation practices and algorithms is now central to its legal strategy, as the company seeks to implement new revenue models while facing substantial compliance risks.

EU regulators have already expanded their investigation into how X’s algorithms operate and how content is moderated on the platform. These concerns have intensified, especially as X’s new monetization tactics come to light. The intersection of revenue generation and regulatory compliance is now at the forefront of X’s strategic challenges.