Billionaire entrepreneur and Dogecoin fan Elon Musk has told investors he plans to complete his $44 billion purchase of Twitter on Friday.
The confirmation came in a call with banks that included Morgan Stanley, Bank of America and Barclays, which each pledged $2.5 billion in loans to acquire Musk.
According to reports, seven of Musk’s banking partners have pledged around $13 billion in total. bloomberg on Monday.
Binance is another major investor in the acquisition, having pledged $500 million to the deal. Other Twitter investors backing Musk include Qatar Investment Authority and venture capital firm Sequoia Capital, which has a strong track record of blockchain investing and cryptocurrency advocacy.
cryptocurrency and twitter
Twitter is a social media stronghold for crypto supporters, even with the commonly understood abbreviation of “Whistle” which stands for “Crypto Twitter”.
As the gathering place for some of the most prominent voices in the industry, Musk’s acquisition is of interest to the community by default.
This interest only grows when combined with Musk’s personal interest for Dogecoin (DOGE). Add financial backing from within the industry to the mix, and a very compelling narrative emerges as to why CT should be watching growth with interest.
What is Musk planning for Twitter?
Musk has made no secret of his plans to overhaul the social media site and remake the platform in his own image. vocal provocateur first described himself As a “free speech absolutist” suggesting a lack of demand for moderation staff. Musk also told Twitter users about the possibility of changes to the platform, which could include a edit button,
During a TED talk in April, Musk said Twitter should become a platform for freedom of expression.
“I think it’s very important for free speech to be an inclusive area,” Musk said. “Twitter has really become the town square.”
Twitter moderation staff have long suspected that their job at Musk’s Twitter would be in jeopardy. a report in Washington Post confirmed on 20 October that their plans are far more stringent than previously thought.
It is now believed that Musk plans to cut Twitter’s 7,500-strong workforce by 75%, leaving only about 2,000 employees.
With such a small workforce, questions arise as to whether Musk will be able to solve Twitter’s long-standing issues.
Twitter and its big bot problem
It’s no secret that one of the most dangerous problems with Twitter is bots. Musk cited the issue as a reason to pull out of the deal before (again) finally changing his mind.
As previously reported by BeInCryptoMusk finds scam bots endemic and particularly annoying.
“they [scam bots] Destroy the product too much. If I had Dogecoin for every crypto scam I saw, we would have 100 billion Dogecoin,” Musk said.
Followers of major crypto figures such as Binance chief Changpeng Zhao (CZ) are regularly targeted by scammers. Any post on CZ is filled with multiple scam answers, and he’s not alone. A Twitter post by bitcoin maximalist Jimmy Song recently received 40 bot responses in the first minute.
The question is whether Musk can tackle Twitter’s bot issues while cutting staff costs.
Elon Musk really loves Dogecoin
Elon likes Dogecoin and recently May This year explained its potential as a currency.
At one point, Musk even considered adding Dogecoin to the Twitter ecosystem. This became public knowledge during the discovery phase of his recent legal battle with Twitter.
“I have an idea for a blockchain social media system that does both payments and short text messages/links like Twitter,” Musk said in a message. techcrunch In September “you will have to pay a small amount to register your message on the chain, which will cut out the vast majority of spam and bots. There is no throttle to throttle, so free speech is guaranteed.”
In a message to Steve Davis, the president of The Boring Company, Musk considered the second option.
“My Plan B is a blockchain-based version of Twitter, where ‘tweets’ are embedded in the transaction of comments. So you’ll have to pay maybe 0.1 Doge per comment or post that comment,” Musk said.
Musk later abandoned the plan as impractical, but perhaps there are other ways Musk could try to incorporate his favorite crypto into the platform.
A premium version of Twitter may be one way to do this, as may a tipping mechanism. At this stage, there is nothing to suggest that such an option is being seriously considered.
The Tough History Between Crypto and Social Media
Crypto has not always enjoyed an overly friendly relationship with social media sites.
In 2019 Facebook banned all crypto advertising outright, while YouTube has been known to ban or block influencers including Anthony Pompliano, whose content they labeled “harmful and dangerous”.
Both sites seem to have refined their stances recently, but this underscores the historical difficulties that crypto has faced.
With Dogecoin-friendly Musk taking control of Twitter (with a little help from industry insiders) proponents can expect a better attitude towards the community as a whole. Whether that optimism of hope matches reality is another matter entirely.
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