On Monday 4rth April, reports emerged that Elon Musk purchased around a 9.2% stake in Twitter, making him the largest stakeholder in the company. But, crypto enthusiasts are more concerned about how Elon Musk’s purchase would affect Twitter’s crypto plans.
Musk Buys Stake on Twitter
Earlier this week, reports emerged that Elon Musk, the founder and CEO of Tesla and Space X, purchased 9.2% of Twitter’s stake. Musk purchased about 73.5 million shares, making him the largest stakeholder in the company.
By purchasing 9.2% at about $2.9 billion, Musk now owns almost four times the amount owned by Jack Dorsey, the Twitter founder. According to reports, following Musk’s purchase and public announcement, Twitter shares spiked by about 26%, basically an $8 billion value increase.
This purchase comes after his tweet a few weeks ago where Musk was skeptical about Twitter being rigidly regulated. Musk Tweeted earlier,
“Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”
According to reports, 70% of the audience commented, No.
In fact, after the poll, Musk asked whether the internet needs a new social network platform. He suggested that he might be creating his new social networking application. Just a few days later, Musk became the largest Twitter stakeholder.
Musk’s Influence on Twitter Crypto Plans
Following Musk’s purchase, many questions arose about how this will affect Twitter’s crypto plans. In late 2021, there were reports that Twitter was building a crypto team to bring blockchain and crypto solutions into the network.
One Twitter user named Tess Rinearson mentioned that they joined the newly formed Twitter team. The tweet continued to say,
“As I build out the team, we’ll be working to figure out what crypto can do for Twitter, as well as what Twitter can do for crypto.”
Yes, Twitter has plans to enter the blockchain space and increase crypto growth. Early in January, the company started supporting NFT Avatars, a feature hugely criticized by Elon Musk.
Elon musk is a top investor in the crypto world, having purchased a massive share in the crypto space last year. At the moment, it’s believed that Elon owns at least a few BTC, ETH, and DOGE. Most business moves Musk makes always impact the entire crypto space.
According to many, Musk could use his influence in crypto to help Twitter with its crypto plan. In the long run, investors should expect more crypto activities from Twitter. Moreover, this recent investment could drive faster crypto adoption.
Social Media and Blockchain Tech
Twitter is among the other social media platforms planning on joining the crypto space. Facebook started exploring the idea of a metaverse in 2021. Discord and Reddit also had plans to join the DeFi and NFT space. Since Musk has a massive influence on crypto, Twitter could maintain a significant share of influence in crypto.
Source: https://crypto.news/musks-purchase-of-twitter-stocks-could-influence-twitters-crypto-plans/