Few might call the acquisition of Twitter by Elon Musk, the CEO of Tesla, a fun ride, but we can all agree that it was certainly an entertaining one. As we glance over the timeline of said acquisition we get to the nitty-gritty of what this means for the crypto space, with Musk being an outspoken and prominent pusher of the digital asset revolution.
In early April, Musk accumulated a 9.2% stake (worth $3 billion then) in the social media platform becoming the biggest shareholder and prompting rumors that he would be buying the platform. The next day, Twitter announced that Musk will be joining the board, only to go back on this several days later. Musk did not join the Twitter board.
Ten days after becoming its biggest shareholder, Musk announces that he wants to buy Twitter at $54.20 a share, valuing the company at $44 billion. On 25 April, after “whirlwind talks and minimal due diligence”, Musk announces that he will be buying Twitter for $44 billion. Musk quickly starts gathering funding, raising roughly $7 billion (later valued at $13 billion).
By May 10, Musk shows the first signs of having cold feet, tweeting that the deal is “temporarily on hold”. After forgoing due diligence, Musk then cites several points from the report as to why he does not want to move forward, fake accounts being a big reason. At this point, the contract has already been signed.
On July 8, the Tesla CEO states that he is terminating the deal. In light of the signed contract which does not provide any wiggle room for Musk’s intention, Twitter says it will take legal action if he walks away from the deal.
Four days later they file the lawsuit. On July 29, Musk countersues Twitter in another attempt to get out of the deal. With Twitter being the favorite to win, the case is scheduled to go ahead on October 17.
In a surprise twist, on October 4, Musk announces that he will go ahead with the acquisition, complying with terms laid out in April. On October 27, the deal is reportedly made.
Wasting no time, in Musk’s first executive order he promptly fired CEO Parag Agrawal, CFO Ned Segal, and legal affairs and policy chief Vijaya Gadde. Taking his new role seriously, he has also put several upgrades in development.
In a lengthy tweet on October 27, Musk outlined his intentions for buying Twitter, clearing the air for many.
“The reason I acquired Twitter is that it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated healthily, without resorting to violence.”
In his announcement, he covered the following points:
- He hoped to make Twitter a digital town square
- The platform will not be in favor of left or right-wing radicals
- He didn’t buy it to make more money, he bought it to improve humanity
- It’s not a free-for-all and some rules will apply
Word on the street is that the billionaire wants to turn Twitter into an “everything app”, modeled off of the Chinese WeChat app. WeChat incorporates a number of features into a mobile app, including messaging, financial, and ride-hailing services.
The Crypto Community’s Response
Unsurprisingly the Crypto Twitter community has been the most supportive of all the others. With Musk’s history of punting Dogecoin (and other cryptocurrencies), the crypto community is excited to welcome in a crypto-positive leader.
On Twitter itself, many prominent names in the industry have come out to celebrate the takeover, while others have expressed hopes that Musk transforms Twitter into a decentralized social media platform.
What Affect Will This Have On Crypto?
Twitter has already started rolling out NFT-supporting upgrades, where users can see NFT tiles where the artwork and creator are displayed with direct links to NFT marketplaces like Rarible and Dapper Labs are available.
Another bullish move for the crypto community is Musk following through on his promise to eradicate crypto scams and bots. Since his takeover, many users have already expressed praise as the situations improve.
In other speculation, many believe the platform will take on a monetizing approach, with crypto being at the forefront of this move. Dogecoin (DOGE) has increased by 25% in value over the last few days in the belief that Musk will use it for creator monetization.
What we do know is that Binance has put together a team to “brainstorm” how blockchain technology can be used by Twitter, and Ethereum founder, Vitalik Buterin, has called for Twitter to move their headquarters to the famously neutral Switzerland.
While no one can say for sure what this might do for the greater cryptocurrency market, all signs are bullish (so far).
Oobit Technologies Pte, 50 Raffles Place #37-00 Singapore Land Tower, Singapore (048623). is a company registered in Singapore (no:201716443G), that has been approved as Appointed Representative of Oobit Technologies OÜ, Harju maakond, Tallinn, Lasnamäe linnaosa, Väike-Paala tn 2, 11415, (no: 14852617 ). Which is authorized and regulated by the FIU (no: FVR001421 and FRK001304).