Benzinga - Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has unequivocally stated that none of his companies, including xAI, will ever create cryptocurrency tokens.
What Happened: Earlier this week, Musk announced that his AI startup, xAI, has finally decided to release its first product.
Given that Musk launched xAI in July this year, and since then, users and experts worldwide have been waiting to see what Musk will bring to the table, it generated massive excitement.
Interestingly, his announcement also sent ripples through the crypto market.
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After his post on X (formerly Twitter), the XAI Corp token experienced a remarkable 175% surge in its value, as crypto enthusiasts and investors mistakenly associated Musk’s AI venture with the creation of a cryptocurrency token. The token’s trading volume skyrocketed by over 13,000%.
This rather shocking development prompted an X user, who is also a designer at Dogecoin (CRYPTO: DOGE) and goes by the name DogeDesigner on the platform, to warn people against this misleading association.
Musk also commented after his warning and reinforced the distinction between his companies and cryptocurrency tokens, clarifying that none of his ventures, including xAI, would ever get involved in such endeavors.
To be super clear, none of my companies will ever create a crypto token— Elon Musk (@elonmusk) November 4, 2023
Why It’s Important: Last year, Dogecoin price started soaring after Musk’s electric vehicle company, Tesla, started accepting cryptocurrency as payment for its merchandise.
Similarly, in 2021, when Tesla announced in an SEC filing that the company had bought $1.5 billion worth of Bitcoin (CRYPTO: BTC) and intended to start accepting the cryptocurrency as a payment for its products, Bitcoin also witnessed a price surge.
However, later, Musk stopped accepting Bitcoin, citing concerns regarding the “rapidly increasing use of fossil fuels for bitcoin mining.”
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This illustration was generated using artificial intelligence via MidJourney
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