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Elon Musk acquires Twitter, what does it mean for crypto

Elon Musk acquires Twitter, what does it mean for crypto

Musk often speaks about cryptocurrencies like Bitcoin, Ether and particularly fondly about the meme coin Doge. Does he now have significant influence on cryptocurrency? 

Tech billionaire Elon Musk bought Twitter as announced on Monday and this development is consequential not just for 'free speech' but also for crypto.

Because now, the world's biggest crypto influencer owns an influencing platform with the reach of a little less than 300 million people (bots too).  

The tech mogul has always been a staunch advocate of cryptocurrencies and Web3. He often speaks about cryptocurrencies like Bitcoin, Ether and particularly fondly about the meme coin Doge. 

Dogecoin 

Elon Musk himself admits that Dogecoin is his favourite cryptocurrency, and his comments about the currency have often caused rallies and slumps in the price of the token. Recently, when Musk suggested that the popular meme coin should be integrated with Twitter's premium service, Twitter Blue, as a viable payment option, the token rallied over 9 per cent in light of his comment. The cryptocurrency also rose nearly 30 per cent after the news of his takeover of the microblogging site became public. 

So yes, all this points at the fact that Musk's Twitter takeover is going to bring the meme coin to the mainstream. If they end up integrating Dogecoin with Twitter Blue, the token would definitely gain more acceptance as a payment option on other platforms as well. 

Crypto scam bots 

If you believe Musk, bots, especially crypto scam bots are the scourge of Twitter. And he has also publicly vowed to get rid of them or ‘die trying. 

One consequence of his Twitter takeover could mean a crackdown on crypto scam bots on the microblogging site. 

Web3 adoption 

Elon Musk has always been a fervor advocate of Web3 technology and decentralization. Experts believe, with Twitter at his disposal, Musk would be able to bring decentralization to the mainstream and his plans to make the Twitter algorith code open-source, would increase the trust in the crypto arena. 

Expert’s take 

Sharat Chandra, crypto expert and Vice President, Research and Strategy at Web3 platform EarthID told Business Today, " Though Musk has been a vocal advocate of crypto and decentralization, his tweets have the potential to move markets.” 

Chandra believes that Musk’s influence can shape the narrative in the cryptoverse with Twitter. “With Twitter at his disposal, Musk's amplified social media reach can act as a double-edged sword in shaping the narrative in cryptoverse. As announced by Elon Musk, open-source Twitter algorithms would reinforce trust in the platform and fight the menace of spambots. But a lot would depend on how this would be implemented in a non-partisan manner.” 

Also Read: Elon Musk buys Twitter for $44 billion

Also Read: And it’s done. Elon Musk now owns Twitter.

Published on: Apr 29, 2022, 9:37 AM IST
Posted by: aakanksha chaturvedi, Apr 29, 2022, 9:29 AM IST