The cryptocurrency market reacts to Elon Musk’s tweets. The markets were under his effect, sending out a tweet, changing his profile photo, or adding “#Bitcoin” to his bio — the latter in particular, which sent the price of Bitcoin (BTC) up 20%. This is why the crypto community is waiting to see what Musk’s investment in Twitter will imply for the sector.
Tesla CEO Elon Musk recently bought a 9.2% stake in Twitter, according to recent disclosures. As a result, he is the platform’s biggest shareholder. In early trade, the announcement boosted Twitter’s stock by more than 22%, while Dogecoin (DOGE) to two-month highs.
Musk’s investment, according to Ken Li, investment director at Binance Labs, will assist the platform to advance its crypto ambitions and may potentially lead to the incorporation of DOGE.
“Elon Musk’s investment in Twitter could assist accelerate Twitter’s crypto adoption,” according to Li. It’s unclear whether Elon Musk’s cherished Dogecoin will be adopted by Twitter in the future”. Furthermore, he stated:
“Elon has long advocated for a more decentralised and censorship-resistant social media network, which blockchain and Web3 technologies might assist with.”
No official statement about Musk’s plans for the company
Aside from Musk tweeting a hilarious poll during the ceremony, there was no official statement about the billionaire’s plans for the company. Given both the Tesla CEO’s and Twitter’s history with cryptocurrency, one plausible argument is that the event will encourage Twitter to explore more crypto and blockchain-based capabilities.
It’s no secret that Musk has a love-hate relationship with cryptocurrency. Tesla bought 1.5 billion bitcoins in February 2021, according to a document. When he announced Tesla’s plans to accept BTC as a form of payment for Tesla automobiles in March 2021, the celebrity billionaire sparked a frenzy. The market, however, plummeted a few months later after Musk stated that the company had abandoned the proposal due to the purported environmental impact of Bitcoin mining’s energy use.
Elon Musk is associated with DOGE in addition to BTC. Musk’s DOGE tweets have been linked to the asset’s price increase as a result of his love of memes, leading to accusations of price manipulation against Musk. Later in 2021, the billionaire stated that DOGE is superior to BTC in terms of payment processing. Tesla began taking DOGE as a form of payment for its goods in January 2022.
Tesla sold a chunk of its BTC holdings
Despite this, Musk’s electric car company had $2 billion in Bitcoin as of late 2021, according to government data. In March 2021, Tesla sold a chunk of its BTC holdings to test the liquidity of such a large amount. A total gain of $128 million realised as a result of this.
Twitter, on the other hand, has experimented with blockchain-based technology like nonfungible coins (NFTs). Twitter Blue, a paid subscription service that costs $2.99 per month, started supporting NFT avatars in January 2022. Musk, on the other hand, was unimpressed by the feature.
Users can tip with cryptocurrency
In addition, Twitter’s tipping jar feature allows users to tip with cryptocurrency. The site introduced BTC tipping in September 2021, allowing users to collect tips through third-party apps. Ether (ETH) added to the platform’s tipping payment choices in February 2022.
The community may assume, based on Musk’s statement, that he will first promote a solution to the problem of crypto fraudsters flooding Twitter threads. Michael Saylor, a proponent of Bitcoin, proposed a solution:
There’s a reason “crypto Twitter” exists. The once-dubbed “microblogging” platform has evolved into the crypto community’s go-to debating site, thanks to its fast-paced flow and extensive interaction opportunities. As a result, it’s only natural for thought leaders (who have a lot of money) to seek a piece of the pie.
Twitter now has at least two crypto celebrities as shareholders, including former Twitter CEO Jack Dorsey, thanks to Musk’s purchase. The potential for that roster to grow is practically limitless.