Elon Musk actually did it. 44 billion US dollars Tesla-Chief will pay for the takeover of the short message service Twitter pay. This makes the 50-year-old an influential media mogul – after all, the social network currently has 217 million users worldwide. They’re ambivalent about Musk’s acquisition. On the one hand, users hope for more freedom of expression. This was last affected on the platform. Others fear the self-proclaimed “King of Mars” will have a strong influence on the Twitter landscape.
The crypto community, on the other hand, is cheering. Opinion leaders from the scene like Michael Saylor or Antony Pompliano congratulated Elon Musk on the platform that he will soon be able to call his own. But what can the crypto space expect from the new owner?
So much in advance: not much is known about Musk’s specific plans regarding Twitter. Only a delisting of the listed company is considered safe. The acquisition is expected to be completed later this year. The Tesla boss wants to finance the takeover on the one hand from his private assets (about 21 billion US dollars) and from a loan on his Tesla shares (about 12.5 billion US dollars). The rest comes from lenders, such as MorganStanley.
However, previous tweets suggest how Elon Musk could restructure Twitter.
Twitter algorithm to become open source
His ambitions to make Twitter the “freedom of speech platform” should start with a publication of the algorithm. Musk had that a month ago required. It is hardly surprising that the crypto space sympathizes with this idea. After all, the BTC and Co. protocols follow a similar approach.
In addition want the Tesla boss got the escalating flood of spam bots under control, which also causes headaches for the crypto community. At regular intervals, scammers use the identities of famous people and try to steal cryptocurrencies through supposed giveaways. Elon Musk’s Twitter profile has also been misused several times for this.
Dogecoin tips coming soon?
Another logical step could be a tip function in Dogecoin. As is well known, Elon Musk makes no secret of his love for memecoin, and has already accepted the cryptocurrency for merchandise from his car manufacturer Tesla.
Twitter, on the other hand, experimented with tips via BTC’s Lightning network in September last year. This allows users to support their favorite profiles with a fee. In view of the intimate relationship between Elon Musk and Dogecoin, extending the function to the memecoin does not seem far-fetched. Especially since there are already unofficial projects that allow tips to be paid out in DOGE.
Speaking of Dogecoin. In the past, the Tesla CEO fell along tweets to the cryptocurrency with the Shiba Inu likeness, which repeatedly correlated strongly with the course of the memecoin. Malicious tongues then accused him of influencing the Doge course, which the regulatory authority, especially the Securities and Exchange Commission (SEC), not remained hidden. The US Securities and Exchange Commission even launched an investigation into the self-proclaimed “DoGFather” in March 2021. However, there were no consequences for Musk.
Will Twitter Become Musk’s Personal Pump & Dump Platform?
This is not the first dispute between the billionaire and the SEC. The authority had previously warned Tesla because its CEO was promoting the company’s shares on Twitter. Since 2018, Musk has therefore had to have every tweet about Tesla approved by his lawyers (“Twitter Sitter”). However, the SEC lacks appropriate regulation for tweets about cryptocurrencies, explains BTC market expert Stefan Lübeck.
The fact that Elon Musk can publish tweets about various cryptocurrencies relatively unhindered without having to fear legal consequences has two main reasons. On the one hand, crypto is not yet sufficiently regulated in the USA, which is why the SEC has little power when it comes to pumping and dumping coins.
On the other hand, Musk does not give any clear investment instructions on Twitter, according to Lübeck. Rather, he moves in a kind of gray area because his posts fall under the right to freedom of expression. Could Twitter now degenerate into the billionaire’s private pump and dump platform as a result of the takeover by the Tesla boss? “Unlikely,” says Stefan Lübeck. In addition, at the beginning of March, the Biden administration called for major crypto regulation. By then at the latest, the behavior of pumping and dumping via Twitter should decrease.