What Does Elon Musk’s Purchase of The Social Media Giant Mean for A Crypto Twitter?
Elon Musk will pay $43.4 billion for Twitter, a renowned social media network. The Tesla and SpaceX CEO has long used the site to promote crypto assets such as Dogecoin and Bitcoin, post memes, and get in problems with the Securities and Exchange Commission.
Elon Musk aims to implement “new features,” “increase trust” by making “algorithms open source,” eliminate spam bots, and “authenticate all humans,” among other goals. But, for the community affectionately known as “crypto Twitter,” or CT for short, what precisely do these words mean? And, following such a drastic shift in public perception, what does this signify for the market?
Elon Musk remarked in a tweet posted on Twitter, which he now owns:
“Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it,”
Elon Musk, with the support of Morgan Stanley, will acquire Twitter for $54.20 per share in a historical leveraged deal.
Musk is the type of person who launches rockets into space and manufactures tunneling flamethrowers. He frequently tweets memes that irritate the community, who then celebrate him on when his tweets turn to Dogecoin. However, this agreement could result in significant changes for the crypto Twitter community, both good and bad.
On the other side, fewer spam bots could mean fewer frauds and scams damaging the cryptocurrency business. To create confidence, the algorithm was made open source. This is a step toward crypto-like principles.
On the downside, does requiring human authentication compromise the privacy and anonymity that distinguishes the social media platform from its competitors? What if the days of anonymous characters hiding behind a cartoon or NFT avatar are numbered?
Only time will tell what Elon Musk has planned for the community, the company, and many more. The transaction is still subject to regulatory approval.
In terms of price appreciation, the acquisition could have a stronger impact on the stock market and cryptocurrency. Since Musk first announced that Tesla would be buying Bitcoin, the market has been bearish for more than a year.
Taking on so much leverage to rebuild a company could be regarded by the market as an indication that the cycle isn’t yet complete. With so much bearish sentiment, short positions, and a market that isn’t expecting it, all it takes is one spark to ignite another upward impulse.
And Elon Musk is the man for the job. For quite some time, the Tesla and Space X CEO has been responsible for inflating asset prices using his Twitter platform.
The “Dogefather” roughly doubled the value of the meme coin. He was crucial in pushing Bitcoin from $30K to $65K in just a few months. Then he was the one who threw the first stone, kicking off the bear market in stocks and cryptocurrency.
What if he’s the one who starts the next bullish wave? The US stock market had one of the most dramatic single-day swings in recent history. After a brief push to $38K, Bitcoin, which was projected to go below $30K, is currently back above $40K.
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