Elon Musk Buys 9.2% Twitter Stake — What Does This Mean for Crypto Investors?
Elon Musk, the CEO of Tesla and SpaceX, has bought 9% of Twitter for $2.89 Billion, becoming the largest individual shareholder of the social platform. As we know, shareholders have six primary rights:
1. Voting power within The Executive Board
2. Property rights
3. The rights to transfer property
4. Dividends
5. The right to inspect and evaluate corporate documents
6. The right to take legal action for acts related to the company
Elon Musk claims that democracy is one of his primary values as a human. Now that he’s the major shareholder of Twitter, he promised platform users their opinions would be considered regarding their role in the company — but Musk did not make any specific public announcement. Meanwhile, Twitter shares have enjoyed a 20%-plus growth over the course of last week.
Everything began on the 25th of March, when Musk posted a poll on his Twitter profile, asking his followers if they consider that Twitter rigorously adheres to free speech principles. 70% of people who took the survey responded with “No”. In the following days, the Twitter thread has continued, this time Elon asking the majority if they would like a new social platform or what could be done with Twitter. The social media platform is known for its groups and communities of crypto-people full of traders and influencers — a market known as CT (or Crypto Twitter).
CT is where cults of developers, founders, bloggers, and speculators belong. These people spend their time sharing ideas and opinions regarding how Bitcoin and Altcoins are reacting on the chart or several projects and points of interest, such as ongoing scams.
Crypto enthusiasts know Twitter as a social platform full of scammers that try to profit from new users’ inexperience. If you visit a crypto guru’s Twitter profile and leave some comments, it’s highly probable to receive messages from fake accounts that impersonate celebrities or the original poster that asks you for cryptocurrencies in return for double the amount or tips. Regarding this issue, the platform’s security is not nearly as good as Instagram’s, where we can’t download or save other people’s pictures. Among other shortcomings of Twitter, Elon Musk was worried about hackers that hijack user accounts, claiming that the community needs to be protected from scams.
Twitter not only has a community of crypto enthusiasts but also has diverse characteristics that allow users to use cryptocurrencies. For example, the tip jar is a feature that enables users to add a payment service from available third parties, including BTC and ETH — currencies that can be sent outside of the platform’s wallets.
In addition, Twitter has not only found new ways to use cryptocurrencies in real-time but also accepts NFTs as profile pictures. The NFT can be uploaded and verified on the Blockchain, and the social platform will put a hexagon around the image, so it looks validated. Regarding NFT profile pictures, Elon Musk was disappointed by the multitude of wasted resources while no one did anything against the scams.
Either way, Elon Musk is now a member of an executive board of twelve people who counsel and give feedback. So it’s important not to believe fake and clickbait news saying that Musk is the new CEO of Twitter. Musk can open discussion topics but lacks the authority to decide on edit buttons or fight against scammers by himself.
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