How Elon Musk will change Twitter and what the deal means for the Crypto

I decided to figure out what changes platform users should prepare for and what the changes mean for the crypto industry. Information about this appeared in a press release. The parties plan to close the deal by the end of 2022.

Interesting! Following the completion of the transaction, Twitter will no longer be a public company.

Earlier, on April 4, 2022, information appeared on the network about Elon Musk's purchase of a 9.2% stake in Twitter for $2.89 billion. Thanks to the deal, the entrepreneur became one of the largest shareholders of the social network. Against the backdrop of news about Elon Musk's purchase of a stake in Twitter and the announcement of the complete transfer of control over the platform to a businessman, the company's shares showed growth.

The reaction of Twitter shares to the news about the purchase of a stake in the social network by Elon Musk and the announcement of the buyout of the platform by an entrepreneur, as well as premarket data.

Interesting! The news about the purchase of Twitter was preceded by tweets by Elon Musk, in which he shared his thoughts on creating a new social network.

Transformation time

The deal was commented on by Twitter founder Jack Dorsey. According to him, the transfer of the social network to Elon Musk is the only right decision for the company. Jack Dorsey drew attention to the fact that Twitter has been under pressure from Wall Street for an extended period of time. The transfer of platform management to Elon Musk, in his opinion, can improve the position of the social network.

Jack Dorsey also approved the plans for the development of the social network, which the head of Tesla shared with him. According to him, the businessman wants to make Twitter "the most reliable" platform.

Here is how Elon Musk himself commented on the purchase of a social network:

“I want to make Twitter better than ever. To this end, I will strengthen the platform with new features, make the algorithms open to increase trust, organize the fight against spam bots, and authenticate users.”

The reaction of the crypto industry

Jack Dorsey and Elon Musk are active participants in the crypto community. The transfer of control of Twitter from one crypto enthusiast to another suggests that the social network will retain its status as a communication center for representatives of the crypto industry.

The crypto market reacted to Elon Musk's purchase of the company with growth. In particular, the favorite cryptocurrency of the founder of Tesla, Dogecoin, demonstrated positive dynamics. In 24 hours, the coin, according to the CoinMarketCap resource, grew by 23.75%. The growth allowed Dogecoin to break into the top 10 most capitalized cryptocurrencies again.

Some netizens believe that the businessman will use the data of social network users for their own purposes. Elon Musk himself, at the same time, claims that he intends to support freedom of speech on the platform.

Interesting! In March 2021, Piplsay analysts found that 37% of US investors view Elon Musk's tweets as a guide to action.

What Elon Musk's purchase of Twitter means for the crypto market

The fight against spam bots, many of which are aimed at the crypto industry, will become one of the main directions in the work of a businessman in the status of the owner of a social network. Elon Musk, among other things, spoke about this during a TED talk in early April 2022 (before the news about the purchase of the social network appeared):

“Honestly, the top priority for me would be to eliminate spam, fraudulent bots and bot armies, that are on Twitter.

Bots, according to Elon Musk, make the social network worse. At the same time, the businessman noted that if he received Dogecoin for every cryptocurrency scam that he saw on the platform, he would have a huge amount of coins at his disposal.

How exactly Elon Musk will deal with bots on the platform is unknown.

It can be assumed that increasing the security of a social network, as one of the centers of communication of the crypto community, by eliminating bots, can positively affect the crypto industry. In particular, the fight against fraud can strengthen the position of cryptocurrency by distancing a new financial instrument from fraud.