Twitter, Elon Musk, and the Crypto InfluenceApril 12, 2022
Long before Elon Musk became the richest man in the world, his way of operating was drastically different from that of his peers. While most billionaires approach business in a long-term manner, focusing on their political ambitions (or the lack of these) and reshaping some part of the global business world, Musk was always all about the present moment. That is why he tends to fix problems as soon as he sees one, especially when it comes to the public image he is trying to groom and present. The same applies to his approach to the crypto domain as well, where Musk has been a growingly important figure for some years. Initially, he entered the field through sheer personal interests, like so many esports players, early adopters, and others who were first of all impressed and intrigued by the same tech. However, the subsequent years saw Musk generate an even bigger role for himself in the uncharted domain of that combined crypto space.
Here, however, just like in other parts of his business, the idea that he could quickly and easily fix things just as soon as he saw what he deems to be a problem was not so clear-cut. Nearly five years ago, a group of Thai children got trapped in a cave – Musk offered his services in the rescue process. The tech he wanted to develop did not get a chance to be used and the children were saved through traditional diving means. However, this did not stop Musk from entering into a very weird legally able with one of the rescuers. A similar impulse created the Boring company, which is building tunnels in Las Vegas right now. The latest of these snap decisions saw Musk buy a big share of Twitter stock. Now, he owns nearly 10 percent of the company and with it, is one of the most important media for the crypto ecosystem. For some, the move is a mechanical decision to support the crypto social media of choice, but for others, it is a worrying sign of potential huge upheaval on just on Twitter, but also in the cryptocurrency domain as a whole.
The stock market reacted with a level of surprise when it was revealed that Elon Musk purchased 9.2 percent of Twitter’s TWTR. Unlike the stock market, the crypto space reacted with a lot of enthusiasm to this decision, believing that Musk’s alignment with crypto will bring about new changes and benefits for cryptocurrency users. Others immediately mentioned Musk’s dedication to free speech and expressed hopes that the current situation on Twitter in that regard will become substantially better because of him.
That comes after Musk criticized Twitter on the same issues and a public poll he shared on his account. Not long after that, the billionaire spent some three billion USD on the Twitter stock. Now, he is the largest shareholder in the company and what he deemed an active investor. That means that he will play a role in the further development of the company and its products. Being that Musk is an active Twitter user, there is little doubt that he has plenty of ideas.
With that level of stock possession, it was clear that Musk will be joining the board of Twitter. The same was announced by the company’s CEO. However, a few days later, the same CEO said that Musk changed his mind and decided not to join the board. For many analysts, this was a perfect example of the frivolous nature of the same billionaire celebrity. In a matter of days, he made a big U-turn on his initial decision and likely came from a better understanding of what the role on the board would mean.
While all those who celebrated his purchase of stocks found this decision disheartening, others immediately remembered the summer of 2021 and a sharp end to the crypto bull market which began in late 2020. One of the key individuals in that development was, yet again, Elon Musk. The same involvement has not stayed as a positive memory in the collective mind of the crypto community.
Summer of Green Energy
At the start of 2021, the little-known dogecoin, which began as a joke cryptocurrency, began rising in value in an unprecedented manner. Musk was tweeting about the same token constantly and thus generated a lot of attention for it on an international level. That was mixed into news that Tesla Motors and even SpaceX will begin taking doge for its payments. Quickly, Musk became the savior figure for the same crypto community, which in turn bound the bitcoin token community as well. Here, another massive boost came after Tesla Motors both purchased BTC tokens worth over one billion USD.
The company also announced that it will accept BTC for the purchases of its cars. However, another U-turn came quickly after Musk began tweeting about the problem of cryptocurrency energy consumption. A decision to stop accepting BTC for Tesla Motors products followed quickly and the bull market was gone. Instead of a further climb in prices, the market began a bearish period that lasted several months. At the same time, the fact that over 80 percent of energy going into the BTC network came from renewable sources was completely ignored by Musk.
Unstable Crypto Influence
There is no denying that Elon Musk has a lot of influence on the cryptosphere. Now, with its possession of a big part of Twitter, that influence got even bigger. But, as a figure that is interested in U-turns and snap decisions, that interest is again likely working against the rising maturity of the crypto market. That means that he is just another factor of volatility that will spread either FOMO or FUD, both of which actually work against the next steps that the crypto market must make. Some might find solace in the fact that Musk will not be joining the Twitter board and deem it as a measure of taking responsibility and not rushing in head first to create a mess. But, for most, it is just another sign that Musk simply wants to play around and will quickly drop out of the game when it is not fun anymore.