Experts: Fee for New X Users Won’t Stop Crypto Bots

The proposal to charge new X users $1 won’t deter crypto-focused bots on the popular platform that projects in the industry use according to experts interviewed by CoinDesk.

The social medium formerly known as Twitter started rolling out the fee to new users in the Philippines and New Zealand on Wednesday, October 18. New users will have to pay to publish posts and also in order to reply to and like posts.

Bots use X’s premium service too

Earlier efforts to charge users have not stopped phishing scams by verified accounts. Many crypto-focused scammers and bots use the medium’s premium service, which comes with a blue tick and costs $8 a month.

The dangers of phishing

The phishing bots can be dangerous. They can draw the attention of an unsuspecting user, whose wallet is drained minutes after clicking on the link.

Experts propose reporting and other measures

Crypto security experts feel other measures would be more effective. SafePal wallet CEO Veronica Wong believes enhancing reporting measures would be more effective in terms of resolving existing issues. It is an uphill battle because there are always new X accounts.

She adds that the measure doesn’t affect accounts with blue and gold checkmarks and strict vetting to block scam ads would be more important to mitigate this.

Proof of Personhood is a possible solution

According to DFG Founder and CEO James Wo, bots remain a formidable challenge, contributing to the crypto industry's poor reputation. Scammers’ ill-gotten gains “substantially outweigh any associated expenses.”

The fee of $1 a year is too low to deter bot groups

He says that the very low fee of $1 a year seems insufficient in the face of determined bot-perpetrating groups. One possible solution would be implementing Proof of Personhood and Decentralized Identity (DID) methods. DID methods identify a user without relying on a centralized organization or company.