Elon Musk made an emphatic statement, asserting unequivocally that none of his companies will ever launch a cryptocurrency, marking a significant shift in his stance regarding the crypto space.
Musk's declaration came to light following misleading reports and promotional efforts that falsely linked him to a fictional cryptocurrency token called Xai Corp (XAI).
It all began when Musk announced last Friday that his artificial intelligence company, xAI, was on the brink of unveiling its technology. In a tweet on the X social media platform, Musk disclosed that xAI was ready to introduce its first AI to an exclusive group. The startup, founded by Musk with a mission to comprehend the true nature of the universe, seemed to be exploring the realm of AI technologies competing with companies like OpenAI and Google.
The team members behind xAI boasted impressive credentials, including alumni from DeepMind, OpenAI, Google Research, Microsoft Research, Twitter, and Tesla, who had worked on notable AI projects. Musk also shared his vision for a new AI tool, "TruthGPT," with a focus on challenging existing AI systems that prioritize being "politically correct."
The association between Musk and the XAI CORP token emerged after the token was created within the last 24 hours and began drawing media attention. "InsideBitcoins" was one of the outlets that promoted the token, publishing a post with the headline: "Xai Corp Price Prediction: XAI Soars 175% on Elon Musk Tweet, While This New Meme Coin Could Surge 20x."
Nevertheless, Elon Musk promptly distanced himself from the token.
"Just to be perfectly clear, none of my companies will ever launch a cryptocurrency," Elon Musk stated in response to a tweet from 'Doge Designer,' a popular graphic designer associated with Dogecoin, underscoring the absence of a connection between Musk and the cryptocurrency token.
This raises questions about Musk's stance on cryptocurrencies. In the past, Musk played a significant role in influencing cryptocurrency prices, such as Dogecoin, and some crypto projects even used his name to capitalize on his substantial following. However, Musk has grown increasingly cautious as most cryptocurrency projects lack inherent value and appear primarily geared towards exploiting unsuspecting investors.
This caution was notably reinforced by a lawsuit filed against Musk by Dogecoin investors in June. They accused Musk of insider trading and market manipulation to the detriment of investors, resulting in significant financial losses. The lawsuit alleged that Musk utilized Twitter posts, paid online influencers, and various publicity tactics to profit at the expense of investors, among other allegations.
Meanwhile, following Musk's statement, the InsideBitcoins Twitter page appeared to have been suspended, leaving uncertainty regarding a potential reinstatement of the page.