How much will the crypto industry be affected by Musk's entry into Twitter?
How much will the crypto industry be affected by Musk's entry into Twitter?
On April 4, Tesla founder Elon Musk leapt to become Twitter's largest shareholder after acquiring a 9.2% stake in the company. Subsequently, Twitter CEO Parag Agrawal said he would appoint Musk as a member of the company's board of directors, which means Musk became one of the decision makers of the social media giant Twitter in one fell swoop.
Musk's entry into Twitter has been known for a long time. He launched a poll on March 25, asking netizens whether they thought Twitter was following the principle of free speech, and more than 70% people chose "No".
After joining the Twitter board, Musk can't wait to bring some new changes, including urging Twitter to go live with the ability to edit tweets. And as a supporter of the crypto industry and the godfather of Dogcoin (DOGE), Musk's new status will also bring more influence to the crypto market.
Between April 4 and 6, DOGE took the lead in making feedback, rising from $0.145 to a maximum of $0.179, an increase of 23.4%. There is widespread speculation that Musk may push Twitter to accept DOGE bounties. In addition, crypto industry practitioners are more expecting Musk to push Twitter to shift to a Web3 social media platform, maintaining freedom of speech while returning rights to users.
Musk becomes Twitter's largest shareholder
Tesla founder Elon Musk is still rambling to expand his business footprint, and his ownership of Twitter has become another major milestone in his career.
Musk became the largest shareholder of publicly traded Twitter (NYSE:TWTR) by purchasing 73,486,900 shares of its common stock, for a total stake of 9.2%, according to an SEC filing released on April 4.
According to statistics, Musk spent about $3 billion on this acquisition, but this huge amount is a drop in the bucket for him. According to the Forbes Real-Time Rich List, Musk's net worth was $302.1 billion as of April 5, putting him at the top of the list, more than $100 billion higher than Amazon founder Bezos, who ranked second.
On April 5, Twitter CEO Parag Agrawal confirmed the news in a tweet and said that Twitter will appoint Musk to the company's board of directors. He believes that Musk will bring great value to the board. Musk then responded that he would accept the directorship and would work with the board to bring great improvements to Twitter in the coming months.
Musk's acquisition continues his usual 'maniacal' style. The wealthy man became one of the decision makers of the social media giant Twitter in one fell swoop in the simplest and most brutal way possible, and the result was actually a long time coming.
On March 25, Musk had tweeted a poll post. He asked netizens that 'freedom of speech' is crucial to democracy, "Do you think Twitter strictly follows this principle? In the final poll results, more than 70% of the more than 2 million participants chose 'No'.
Musk has launched polls against Twitter
After this vote, Musk followed up with a post stating that given the fact that Twitter actually has the character of a public space, the failure to adhere to the principles of free speech fundamentally undermines democracy. "Do we need a new social media platform?"
With this statement, speculation was rife that Musk was going to create another social platform, but with the news of his acquisition of a stake in Twitter, there is an explanation for everything.
Although Musk can only serve as a secondary director of Twitter until 2024 according to the rules of Twitter's board, which means his voice within Twitter is limited. However, Musk has already started 'Twitter governance' in a hurry, as he launched a poll on Monday on Twitter about 'whether he wants the edit button', and 73.6% netizens chose 'Yes'.
The following day, Twitter officials announced that it was indeed working on a secondary editing feature for tweets and revealed that it would be tested in its paid service, Twitter Blue, in the coming months.
It's clear that Musk can't wait to bring some new changes after his arrival at Twitter. And as a supporter of the crypto industry and the 'Godfather of Dogcoin', it is interesting to see how Musk's new status will affect the crypto market.
DOGE follows the "Godfather" three days up 23%
Over the past year or so, Musk has repeatedly expressed his love for Dogcoin (DOGE) in tweets, and at one point Tesla accepted users to use DOGE to purchase cars. After suspending acceptance of DOGE payments due to energy consumption issues, Musk again announced last December that he would support DOGE purchases of some of Tesla's peripheral goods.
It's safe to say that Musk's persona in the crypto world has been tied to DOGE for a long time, and when news broke that he was a large shareholder in Twitter, DOGE then kicked off a wave of gains.
Between April 4 and 6, DOGE rose from $0.145 to a maximum of $0.179, an increase of 23.4%. As of 5:00 p.m. on April 6, DOGE was quoted at $0.162, still up more than 10% compared to the previous price.
Although Musk has not yet clarified whether he will increase the use cases of DOGE on Twitter, there has been a lot of speculation in the market, of which Twitter support for DOGE bounty is thought to be one of the first to be implemented.
Last May, Twitter launched the Tip Jar feature to make it easy for users to reward their favorite creators. With Tip Jar, users can connect their Twitter accounts to payment channels such as Cash App, Patreon, and PayPal to reward dollars. In addition, Twitter also supports users to connect to Bitcoin wallets for rewarding.
After Musk became a Twitter director, Dogcoin co-founder Billy Markus said he intends to post at least one tweet a day with the #Doge Twitter Tip Jar# hashtag to keep attracting the attention of the Twitter team and pushing Twitter to support DOGE tip bounty. And before that, Musk has also publicly supported DOGE several times, saying it is a better crypto asset than Bitcoin.
With the close connection between Musk and DOGE, it is not too surprising that Twitter will make any changes related to DOGE in the future, as someone has already posted a photoshopped Twitter icon that changes the iconic Twitter bird logo into the image of a dog coin. However, DOGE is only the tip of the iceberg for the entire crypto market, and crypto industry practitioners are looking forward to Musk's tweets to bring more transformative changes to the industry.
Netizens photoshopped Twitter icon into dog coin image
To some crypto people, starting a Web3 revolution around centralized Twitter is one of the most ambitious goals, and likely the plan Musk will try to advance.
It is important to know that Musk became a major shareholder of Twitter most intuitively because he believes that Twitter restricts users' freedom of speech, which reflects his rejection of 'power centricity'. And according to foreign media reports, Musk had also proposed an idea with Twitter CEO Agrawal and Twitter co-founder Jack Dorsey that would allow people to control what they see in their social media streams through technological means, fundamentally shifting the power of social networks from giant companies to users.
Returning power to users is the main concept of Web3 and a major ultimate goal pursued by the crypto industry. Now that Musk is in charge of Twitter, the outside world has seen the possibility of the giant company's transformation into a Web3 social platform.
Notably, Twitter co-founder Jack Dorsey is himself a fan of the crypto industry, a self-proclaimed 'Bitcoin believer' who has also publicly stated his willingness to spend more time in the crypto space. Last November, Jack Dorsey also provided a playful reason when stepping down as Twitter CEO, "I believe Twitter is ready to move on from its founders.
This statement is like the "handing over power to the community" often mentioned in the crypto field, and perhaps deep inside Jack Dorsey's heart, he also expects the decentralization of Twitter. However, as a public company, Twitter is still facing many shareholders and SEC's constraints, and the social media giant still faces many challenges to turn the rudder and sail.
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