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April 26, 2022

Elon Musk Taking Over Twitter vs. Crypto

Elon Musk, the CEO of Tesla and a billionaire, has acquired Twitter, a prominent social media program. The acquisition comes after the tech mogul turned down an offer to join Twitter’s board of directors.

Twitter has evolved into a hub for crypto users, allowing the establishment of a variety of crypto-related companies. The current $44 billion acquisition is intended at reaching a variety of goals that should improve the app and maybe have an impact on the crypto market in the short and long run.

What will the impact of this deal be on cryptocurrencies?

Musk stated that if he were to buy Twitter, he would eliminate spam bots. Spam bots have significantly clogged the social media app. Any cryptocurrency Twitter user can witness for themselves how these automated algorithms have inundated the social service.

Dogecoin, a cryptocurrency inspired by memes, was founded as a prank earlier in 2013. As Musk backs the token, the value of this memecoin has increased.

Dogecoin’s price had increased by around 20% in the last 24 hours, with a massive 78 percent spike in volume transaction. This rise is most likely due to traders speculating that Twitter will integrate the memecoin in some form.

Musk has shown to be an ardent backer of this memecoin over time. He has demonstrated this by using the token as a means of payment for services in his businesses.

Last December, the tech mogul announced that Tesla Inc., his electric manufacturing company, will begin accepting Dogecoin as a medium of exchange.

According to statistics, Tesla is now the second largest bitcoin holding business, after only MicroStrategy Inc. Tesla now has 48,000 bitcoin at the time of writing.

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As the new CEO of Twitter, the crypto billionaire might easily persuade Twitter to join the bitcoin bandwagon over time. He has a great relationship with former Twitter CEO Jack Dorsey, who is a big proponent of Bitcoin.

Twitter has been increasingly implementing Ethereum-based non-fungible coins since last year (NFTs). Previously, former CEO Jack Dorsey sold his first tweet as an NFT. Following that, the social networking app published a collection of NFTs on Rarible, an NFT marketplace based on the Ethereum network.

Twitter has launched a feature that allows Twitter Blue subscribers to upload JPEG and PNG NFTs as profile images, which will be shown in a hexagonal shape rather than the native circular shape. However, this advancement is currently confined to static picture NFTs available on the Ethereum blockchain, and the service is only available on iOS devices.