Elon Musk acquired Twitter this past week and people are buzzing about the possible changes coming regarding bots, account deactivation and free speech protocols. But what about the impact on the social media site’s crypto ecosystem? What changes may come now that Musk is in charge?
Why it matters: Cryptocurrency dominates many of the conversations on Twitter. There have been over 1 billion tweets about crypto since 2020, with 299 million of them being tweets from this past year alone, according to Hypebeast.
- Musk regularly tweets about crypto himself, which affects crypto stocks significantly. The meme cryptocurrency dogecoin, for example, jumped over 50% in February after Musk tweeted “dogecoin is the people’s crypto,” according to The Economic Times.
- Dogecoin most recently spiked over 20% this last week following Musk’s Twitter purchase, CNBC reports.
What he’s saying: “Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it,” Musk said in a statement announcing the deal.
- According to Musk, Twitter’s spam problem is the “single most annoying problem” with using the service. Earlier this year, he even launched a questionnaire on Twitter asking his followers, “How long must this go on?”
- “If I had a dogecoin for every crypto scam I saw, I would have a hundred billion dogecoin,” he tweeted, according to TheBlockCrypto.
- Musk’s plans to combat crypto bots may result in a healthier crypto environment, with decreased false information, increased credibility and fewer scams.
Details: Musk says Twitter Blue users should have the option to pay for the $2.99 a month premium subscription service in dogecoin. With his new ownership over Twitter, payments for future services in other crypto like bitcoin or ethereum may become available.
- Musk also proposed that the pricing “should be proportionate to affordability & in local currency.”
- Musk stands to gain from crypto becoming more mainstream, revealing in March that he personally owns bitcoin, ether and dogecoin — and doesn’t plan to sell.
The big picture: Elon Musk yields power, whether good or bad, over the Twitter crypto world. The milestone $43 billion Twitter deal could have an influence on the recent stock market and crypto carnage.