What does Elon Musk’s purchase of the social media giant mean for a crypto Twitter?

Elon Musk will pay 43.4 billion dollars for Twitter, a well-known social network. The CEO of Tesla and SpaceX has long used the site to promote crypto assets like Dogecoin and Bitcoin, post memes, and get in trouble with the Securities and Exchange Commission. Source: Jonathan Newton/The Washington Post via Getty Images Elon Musk aims [...]

What does Elon Musk’s purchase of the social media giant mean for a crypto Twitter?

Elon Musk will pay 43.4 billion dollars for Twitter, a well-known social network. The CEO of Tesla and SpaceX has long used the site to promote crypto assets like Dogecoin and Bitcoin, post memes, and get in trouble with the Securities and Exchange Commission.

Source: Jonathan Newton/The Washington Post via Getty Images

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 exactly do these words mean? And, after such a drastic change in public perception, what does this mean for the market?

Elon Musk commented in a tweet posted on Twitter, which he now owns:

“Twitter has enormous potential. I look forward to working with the company and the user community to unlock it.”

Elon Musk, with the support of Morgan Stanley, will acquire Twitter to $54.20 per share in a historic leveraged transaction.

Musk is the kind of guy who launches rockets into space and makes tunnel flamethrowers. He frequently tweets memes that irritate the community, which then celebrates him when his tweets are converted into Dogecoin. However, this agreement could result in significant changes for the crypto Twitter community, both for better and for worse.

What does Elon Musk's purchase of the social media giant mean for a crypto Twitter?Source: REUTERS/Dado Ruvic/Illustration

On the other hand, fewer spam bots could mean less fraud and scams hurting the cryptocurrency business. To create trust, the algorithm was made open source. This is a step towards cryptographic principles.

On the downside, it requires human authentication compromise privacy and anonymity What 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 cryptocurrencies. Ever since Musk first announced that Tesla would buy Bitcoin, the market has been bearish for over a year.

Taking so much leverage to rebuild a company could be seen by the market as an indication that the cycle is not yet complete. With so much bearish sentiment, short positions, and an unexpected market, all it takes is a spark to ignite another bullish momentum.

What does Elon Musk's purchase of the social media giant mean for a crypto Twitter?Source: Coincu

And Elon Musk is the man for the job. For quite some time, the CEO of Tesla and Space X has been responsible for inflating asset prices using his Twitter platform.

The “Dogefather” roughly doubled the value of the meme coin. He was instrumental in pushing Bitcoin from $30K to $65K in just a few months. Then it was he who threw the first stone, kicking off the bear market in stocks and cryptocurrencies.

What if he is 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 dip below $30K, is currently back above $40K.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

CoinCu News

source: news.coincu.com