Whenever Elon Musk does something on Twitter, the crypto market reacts to it. Posting a tweet, changing their profile picture or adding “#Bitcoin” to their bio impacts markets – the latter even more so as it pushes the price of Bitcoin (BTC) up 20%. Because of this, the community lies in anticipation of what Musk’s Twitter investment could mean for the crypto industry.
Recent filings show that Tesla CEO Elon Musk has acquired a 9.2% stake on Twitter. This makes him the largest stakeholder of the platform. The news immediately sent Twitter shares up more than 22% in early trade, sending Dogecoin (DOGE) close to its two-month highs.
Ken Li, investment director at Binance Labs, told Cointelegraph that Musk’s investment can help advance the platform’s crypto initiatives and may even lead to DOGE’s integration into the platform.
According to Li, “Elon Musk’s investment in Twitter could help accelerate Twitter’s crypto adoption. It remains to be seen if Twitter will start adopting Elon’s beloved Dogecoin in the future.” He also stated:
“Elon has always made the concept of a more decentralized and censorship-resistant social media platform very public, and blockchain and Web3 technology can help make that possible.”
Aside from Musk using this event to tweet Funny poll, there hasn’t been any official announcement regarding the billionaire’s plans for the company. However, given both the Tesla CEO and the social media company’s history with crypto, one possible hypothesis would be that the event will fuel Twitter’s exploration of more crypto and blockchain-based capabilities.
Musk’s love-hate relationship with crypto is no secret. In February 2021, a filing showed that Tesla bought 1.5 billion BTC. In March 2021, the prominent businessman sparked a frenzy when he announced Tesla’s plans to accept BTC as payment for Tesla cars. A few months later, however, the market collapsed after Musk revealed that the company had dropped the plan over the alleged environmental impact of bitcoin mining’s energy use.
Aside from BTC, Elon Musk is linked to DOGE. Due to his love of memes, Musk’s DOGE tweets have been linked to the asset’s soaring price, leading Musk to be accused of price manipulation. The billionaire also stated later in 2021 that DOGE is better than BTC in terms of payments. In January 2022, Tesla began accepting DOGE as payment for its goods.
Despite this, official records show that Musk’s electric car maker held $2 billion worth of BTC at the end of 2021. A portion of Tesla’s BTC holdings was also sold in March 2021 to test the liquidity of such a volume. This resulted in at least $128 million in realized profits.
On the other hand, Twitter has also dabbled in blockchain-based technologies like Nonfungible Tokens (NFTs). Back in January 2022, Twitter opened up support for NFT avatars to subscribers of Twitter Blue, a paid subscription service that costs $2.99 per month. However, Musk reacted negatively to the feature.
Twitter is investing engineering resources into this BS while crypto scammers are throwing a spambot block party in every thread!?
— Elon Musk (@elonmusk) January 21, 2022
Related: Crypto vs. physical: Musk and Saylor’s inflation debate boils down to scarcity
Apart from that, Twitter also supports tipping with crypto through its tipping jar feature. Back in September 2021, the platform enabled BTC tipping, allowing users to use third-party apps to get tips. In February 2022, the platform added Ether (ETH) to its tip payment options.
Because of his tweet, the community speculate that Musk will first release a solution to the problem of crypto scammers spamming threads on Twitter. Bitcoin proponent Michael Saylor has made a suggestion to fix this problem:
Twitter can solve the problem of scammers and spambots if it allows real people to post ~50,000 sats ($20) via Lightning⚡️ and get verified with an Orange Check. Then we can limit comments/DMs to verified accounts. Bad actors forfeit their bail & @twitter Money makes evil.
— Michael Saylor⚡️ (@saylor) January 21, 2022
“Crypto Twitter” is a household name for a reason. With its rapid flow and rich interaction options, what was once known as the “microblogging” platform has become the central debate center for the crypto community. So it’s natural for thought leaders (with deep pockets) to get a piece of it.
After buying Musk, Twitter now has at least two crypto celebrities among its shareholders, including former Twitter CEO Jack Dorsey. There are almost no limits to the expansion of this list.
https://cointelegraph.com/news/what-elon-musk-s-investment-could-mean-for-twitter-s-crypto-plans What Elon Musk’s Investment Could Mean For Twitter’s Crypto Plans