Elon Musk has made a purchase of shares, in one of the most popular social media, Twitter. By acquiring a 9.2% stake, he has become the world’s largest holder of shares. Is a supporter of cryptocurrencies and a platform that has a wide community in this particular industry a harbinger of a crypto revolution?
Elon Musk and his attitude towards cryptocurrencies
It has not been known for a long time that Elon Musk is a great advocate of digital money. Tesla, which is managed by him, has Bitcoin on its balance sheet, purchased in early 2021 for an amount close to $1.5 billion. Although some of that money has been liquidated, most of it still remains a hard financial asset of the company. At one point, bitcoin was so important that for several weeks it was the method of payment for Musk’s electric cars. Unfortunately, shareholder pressure and the alleged high carbon footprint of validating transactions on the most popular cryptocurrency network meant that this payment method was suspended. But importantly – not completely discarded.
Musk is also known for his very positive approach to Dogecoin. He repeatedly spoke about it in social media, mainly on Twitter, causing significant movements in the price of the dogecoin. Over time, he has allowed DOGE to become an asset with which select Tesla assets can be bought.
Twitter, on the other hand, is a platform that is also looking towards the crypto market with a friendly eye. It supports the adoption of NFT, allows you to give tips in the form of Bitcoin and recently also Ethereum. Its founder, Jack Dorsey has always sided with Bitcoin, which resulted in his resignation from the CEO position to work supporting the network’s largest cryptocurrency. However, a 2.25% stake in the company still remains in his hands.
Elon and Twitter – what will come of this?
Since the disclosure of the purchase that Elon Musk made, there has been speculation about what will come of it. What we do know is that the 9.2% stake gives him a significant say in the further development of Twitter. Speculators note that perhaps an integration of Twitter with Dogecoin will be made. It will become possible to tip in this cryptocurrency as well. On this news, DOGE rose by 21% in 24 hours.
Ken Li, chief investment officer at Binance Labs notes in turn that:
“Elon has always spoken publicly about the concept of a more decentralized and censorship-resistant social media platform, and this is something that blockchain and Web3 technology can help enable.”
One of the biggest nuisances of Twitter that Musk has long pointed out is the amount of spam and phishing attempts for cryptocurrencies, by entities impersonating others who are often popular in the blockchain world. It is therefore speculated that the idea of pushing through a solution to cleanse the platform of such practices will be an absolute priority for Musk.