Elon Musk Buys Social Media Giant Twitter
Musk wants to introduce "new features," "raise trust" by making "algorithms open-source," eliminate spam bots, and "authenticate all humans," among other goals. But, for the group 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 To Tap Twitter’s Tremendous Potential, Introduce Changes
“Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it,” Elon Musk said in a tweet – posted on the platform he now owns.
Musk, with the support of Morgan Stanley, will purchase Twitter for $54.20 per share in an unprecedented 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 when his tweets turn to Dogecoin. However, this agreement could result in significant changes for the crypto Twitter community, both good and harmful.
On the other side, fewer spam bots could mean fewer thefts 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 require 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 Musk has planned for the neighborhood, the company, and other aspects of his life. The transaction is still subject to regulatory approval.
How The Deal Could Change The Crypto And Stock Market Trend
In terms of price appreciation, the purchase 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 gloomy for more than a year. Taking on so much debt to rebuild a business could be interpreted by the market as an indication that the cycle isn't yet complete. With so much adverse sentiment, short positions, and a market that isn't expecting it, all it takes is one spark to start 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 instrumental 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 equities and cryptocurrency.
What if he's the one who starts the next bullish wave? The US stock market (seen above) had one of the most dramatic single-day swings in recent memory. After a brief push to $38K, Bitcoin, which was projected to go below $30K, is currently back above $40K.
The historic $43 billion Twitter deal may have put a bottom to the recent stock market and crypto devastation if a reverse begins from here.