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Cryptos’ reaction to Elon Musk’s Twitter takeover bids

If you are interested in cryptocurrency, you must be paying a little attention to Elon Musk’s Twitter account. The thoughts and memes that he has been sharing for years have encouraged the crypto users to buy or sell their crypto assets, which is only one reason why his latest move, a brazen attempt to take over Twitter, has Crypto Twitter totally enthralled. Dogecoin, Elon Musk’s favorite crypto, surged 10% as the Musk’s made it public about his intention about Twitter. Is there any other reason why Musk’s move was taken seriously in the crypto industry?

  • The entire story started on April 4th, when Musk’s intentions were made public after buying 9.2% of Twitter’s stock. After that, Parag Agrawal, CEO of Twitter, announced that Musk would be joining Twitter’s board of directors. A few days later, Agarwal disclosed that Musk denied joining, and the Tesla CEO offered to buy Twitter for $43 billion and take it private. Last week, the board resorted to a “Poison Pill” provision to make Twitter more expensive to buy by Musk. Twitter announced that if Musk increased his stakes by 15%, Twitter would grant shareholders the right to buy more Twitter shares.
  • Why is Elon interested in buying Twitter? As per his statement, he wants to encourage “free speech” on Twitter while limiting content moderation. Musk also plans to make Jack Dorsey’s Twitter feed algorithm “open-source,” critical to the decentralized ethos that underpins many blockchain applications.
  • Some notable crypto players were inspired by the possibility of a “decentralized Twitter.” Cardano founder Charles Hoskinson offered to help Musk construct a decentralized alternative to Twitter, while FTX founder Sam Bankman-Fried talked about encrypted on-chain tweets. However, the prospect sparked a lot of backlash from the crypto community. Jackson Palmer, a co-founder of Dogecoin, expressed his displeasure with the world’s richest person conducting a hostile takeover of a public firm. As per Ethereum co-founder Vitalik, Buterin did not mind Musk’s takeover bid for Twitter, compared to those ethically challenged foreign governments, but also cautioned that it could go wrong.
  • Twitter has already been funding Bluesky, a decentralized social media project developing a “decentralized protocol for public conversations” that will allow users to control their relationships with audiences while also allowing developers to innovate on top of the protocol without requiring permission. Web3 developers are working on a project called Entre, focusing on connecting working professionals. Every user profile is an NFT, with all their connections recorded on the DeSo blockchain.

As Musk’s plans unfolded, the investors were skeptical since the mode of payment Tesla Ceo would adopt was unclear. We can confirm this as Twitter’s stock price remained stagnated. Finally, Twitter’s stock price surged as other potential buyers showed interest. It is still unclear how this drama will unfold, but we can surely get news about this on Twitter.