Who created PayPal Elon Musk? Elon Reeve Musk (born June 28, 1971) is a business magnate and investor. Musk is the founder, chairman, CEO and chief technology officer of SpaceX; angel investor, CEO, product architect and former chairman of Tesla, Inc.; owner, chairman and CTO of X Corp.; founder of the Boring Company; co-founder of Neuralink and OpenAI; and president of the Musk Foundation. He is the wealthiest person in the world, with an estimated net worth of US$207 billion as of October 2023, according to the Bloomberg Billionaires Index, and $231 billion according to Forbes, primarily from his ownership stakes in Tesla and SpaceX.
Musk was born in Pretoria, South Africa, and briefly attended the University of Pretoria before immigrating to Canada at age 18, acquiring citizenship through his Canadian-born mother. Two years later, he matriculated at Queen’s University in Kingston, Ontario. Musk later transferred to the University of Pennsylvania, and received bachelor’s degrees in economics and physics there.
He moved to California in 1995 to attend Stanford University. However, Musk dropped out after two days and, with his brother Kimbal, co-founded online city guide software company Zip2. The startup was acquired by Compaq for $307 million in 1999, and with $12 million of the money he made, that same year Musk co-founded X.com, a direct bank. X.com merged with Confinity in 2000 to form PayPal.
Who created PayPal Elon Musk?
Payments giant PayPal, which was founded by Elon Musk, Peter Thiel, Yu Pan, and others, announced on Monday that they are launching a stabelcoin pegged to the U.S. dollar. This makes PayPal the first major financial technology firm to incorporate digital currencies for payments and transfers. The news had a positive impact on the company’s shares, lifting them by 2.66 per cent.
Stablecoins, a type of cryptocurrency designed to mitigate volatility by pegging their value to a stable asset, have been in existence for several years. However, they have yet to gain significant traction in mainstream consumer payments, mainly serving as a means to trade other cryptocurrencies such as Bitcoin and Ethereum. Tether remains the largest stablecoin, followed by USD Coin, issued by crypto provider Circle.
PayPal’s stablecoin, named PayPal USD, is backed by U.S. dollar deposits and short-term U.S. Treasuries and will be issued by Paxos Trust Co. Its gradual availability will be limited to PayPal customers in the United States. An advantage of this stablecoin is that it can be redeemed for U.S. dollars at any time and can also be used to facilitate the buying and selling of other cryptocurrencies offered on PayPal’s platform, including Bitcoin.
Previous attempts by major mainstream companies to introduce stablecoins have encountered resistance from financial regulators and policymakers. Meta’s plan to launch Libra, a stablecoin, was thwarted in 2019 due to concerns about potential disruptions to global financial stability.
In response to the growing interest in stablecoins, several major economies, including the European Union and Britain, have recently established regulations to govern these digital assets, with the EU’s policies scheduled to take effect in June 2024.
It is worth noting that in 2002, PayPal was acquired by eBay for $1.5 billion in stock. Musk, the founder and the largest shareholder of the company with 11.72 per cent holding, received $175.8 million from the buyout.
Is Musk really the genius he claims to be?
Well, let us tell you a short story from 2018. A Thai soccer team had got trapped in a cave. Vern Unsworth, a member of the international team of specialist cave divers who had rescued the Thai boys, had then labelled an attempt by Tesla chief Elon Musk to help in the rescue as unnecessary.
Musk had sent a mini-submarine to rescue the boys. However, Unsworth said, “It just had absolutely no chance of working. He had no conception of what the cave passage was like. The submarine I believe was about 5 feet, 6 inches long, rigid, so it wouldn’t have gone round corners or round any obstacles.” And what was Musk’s response? Well, he called the cave diver a “pedo”.
The mini-submarine attempt wasn’t an aberration:
How could Musk, the man who is almost projected as the one planning humanity’s future, make such a big error? Well, the mini-submarine attempt isn’t the only issue facing Musk. In 2017, Bloomberg reported that Tesla burns $500,000 per hour.
Yet, in March 2018, a Tesla driver was killed while test-driving an autopiloted Model X. Later in May 2018, two teenagers were killed while driving a Model S. In fact, Tesla was founded in 2003 and praised as a next-gen automobile company but most major automakers quickly surpassed the venture. Star investor Jim Chanos described Tesla as a “walking insolvency” in 2016.
In fact, Elon Musk and Tesla board have faced complaints and lawsuits over allegations of securities fraud and “erratic tweets”.
When it comes to Musk’s Mars promise, two astrophysicists also debunked the billionaire’s prediction that human beings can live on the Red Planet.
Elon Musk – The PayPal reality
When it comes to PayPal, Elon Musk is often described as the cofounder of the platform hailed as the pioneer of the digital payments industry. PayPal is one of the biggest reasons why Musk carries a wonder boy PR.
Let us tell you one small fun fact- PayPal is the successor of a company originally named Confinity that came into being in 1998. Interestingly, Confinity wasn’t founded by Elon Musk, rather it was a brainchild of Max Levchin, Peter Thiel, and Luke Nosek.
The first digital payments version of Confinity was launched in 1999. By that time, a remarkably similar platform called x.com had come into being. X.com was founded by Musk, Harris Fricker, Christopher Payne and Ed Ho. Musk served as the x.com CEO.
In 2000, the two digital payments firms got merged with each other. However, combining the two firms did not turn out out be very successful. Elon Musk took over as the CEO in April 2000 and was fired in October 2000.
Later, Peter Thiel took over as the CEO of the merged company and the company got rechristened as PayPal in the year June 2001. PayPal launched its first IPO in February 2002 and later eBay purchased it for $1.5 billion. Elon Musk, who still held a stake in PayPal, made a windfall gain of $180 million from the sake and suddenly became super-rich. Later, he would invest this money into other ventures like SpaceX, Tesla and SolarCity.
So, Elon Musk was not a founder of Confinity which would go on to become PayPal. When Confinity was rechristened as PayPal, he wasn’t a CEO of the entity formed by merger of Confinity and x.com. Nor was Elon Musk the CEO of PayPal when it released its first IPO or when it subsequently signed a sale agreement with eBay.
Yet, Elon Musk has become known as the founder of PayPal and the pioneer of the digital payments industry.
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