Twitter Sale could usher in a New Crypto Phase for the Social MediaOctober 29, 2022
After many months of back and forth, including some mutual threats of court action, the famous billionaire Elon Musk managed to buy Twitter. Now, one of the most influential social media platforms is in full ownership of the richest man on the planet. That is already raining many alarm bells across a range of quarters, but the crypto domain is mainly celebrating this development, thanks to several big potentially beneficial elements. These will be the same investors supposedly brought to Twitter, but also use it to expand its mysterious app X, which should become the first Western everything application.
For now, Musk is cleaning house in terms of Twitter’s top management, who are quickly becoming unemployed. The coming weeks and months will also generate a range of news from the same company, but even now, analysts are trying to gauge the options for the further development of the platform. Here, the crypto angle is one of the most interesting ones and also one that could have a much wider effect on the market. In the present crypto winter, any such development is basically desirable and even necessary for a bigger change in crypto fortunes.
The most immediate and interesting news is the fact that one of the biggest digital currency exchanges in the world, Binance, participated in the process of purchasing Twitter. The CEO of the company said that Binance joined the deal with 500 million USD in private equity. That allowed Musk to combine all of the funds from many different sources to add up to over 40 billion USD which ended up being the price for the social media platform. Biannca representatives also shed a bit of light on why they joined the deal with half a billion USD.
According to them, they want to support the development of the next step of Twitter, especially the crypto element of that process. Here, it is clear that Binance believes in Musk’s vision where social media are drastically more integrated with cryptocurrency networks. The good news is that this process is already ongoing and that any future development will not have to take the same back to the drawing board. Instead, the new team of Elon Musk will pick up where the old management left it and Binance clearly wants to be a part of that.
Twitter Crypto Functionality
The big leap that the famous social media created as a foray into crypto was the introduction of NFT cover images. That move included a range of integration, including one to the SolSea platform, but provided a very seamless experience at the end of the day. Despite many who were skeptical about the whole concept of integrating non-fungible tokens into the regular Twitter platform, the same is presently a working reality like it is in, for example, esports. That is also a big reason why many are very enthusiastic about the future of the next possible crypto steps for Twitter.
If these too technically get through without any issues or backlash from users, in theory, Elon Musk could add anything crypto-wise to the platform and have it working in a very short period of time. But, the NFT profile image feature is still a relatively niche element of the Twitter experience. Integrating something like crypto micropayments, more or less akin to small tips for tweets, would be much more difficult from the perspective of user experience. It would also be something that millions of users would begin employing almost immediately, unlike NFT profile images, which are still a rarity. So, it is difficult to say that any crypto integration would be technically easy or quick.
In a matter of days, new management under Elon Musk began introducing new features. That is presently the Twitter Status option which has been rolled out to some users of the mobile version of the platform in the US and Australia. The idea is to experiment with this possibility, which is in itself nothing major. For example, Facebook has been having the same feature for years pretty much in the same shape and form as Twitter is having now.
However, the instance is likely generally intended to show that Musk is ready to experiment quickly. That could involve new crypto features getting their tests in the very near future. But, the end result might be more complex than it first seems, and even more problematically the tests themselves could be connected to the X app, not Twitter itself.
X App and the Future
The concept of the X app or the Everything app as many in the mainstream media keep saying is relatively simple. It is basically a financial application that controls the user’s digital wallet, usually one that encompasses crypto like bitcoin and fiat, but also connects it to a range of other services. From shopping to the booking of flights, accommodations, and many other features, everything apps are already working in places like China.
Here, WeChat has been the go-to everything app for nearly a decade. But, in the EU and the North American markets, no parallel has been created so far. That comes from a range of potential problems that these apps would have in the regulatory and anti-monopoly domain, but also the hesitancy of big companies like Amazon or Google to venture there. For Elon Musk, there are no such hesitancy barriers and the purchase of Twitter is an accelerant in the same process.
Crypto and Twitter Sale
In the short term, crypto will benefit from this massive sale of arguably the most relevant social media to public discourse on a global scale. That stems from the possibilities that presently seem endless and the willingness of Elon Musk to invest so much money into his vision.
The connections like the Binance one only enforce the notion that even in the depth of the crypto winter, something is moving towards a healthier crypto ecosystem. But, even with the sale and the enthusiasm, the actual crypto spring remains a distant notion, even with a crypto-friendly owner of Twitter.