Elon Musk pauses his offer to Twitter: why could it matter to crypto?

Last April, Elon Musk (Tesla and SpaceX CEO) made a billionaire offer to fully buy Twitter. Until now, the deal ascended to $44 billion for the social media company, and it was assumed as something mostly done. However, in a recent statement, Musk just paused this deal closely followed by the crypto community.

The issue resides in the real number of Twitter accounts. According to data provided by the company, only 5% of its 229 million daily active users (DAUs) could be non-human or fraudulent (bots, Betrug, or fake accounts). On the contrary, Musk affirmed in a tweet that the figure is over 20%. Indeed, he even believes that it’s much higher.

To emphasize its point, he quoted a previous thread shared by Parag Agrawal, the current CEO of Twitter. On it, Agrawal was talking about fake users, and how they suspend over half a million spam accounts every day. He explains that his team does the best they can but, sometimes, fake accounts look pretty legit. And “none of us want to solve a captcha every time we use Twitter.”, which would probably solve the bot problem.

The bottom line of his thread is that Agrawal alleged only 5% of the accounts are fake, but refused to publicly share their data over privacy concerns.

“Unfortunately, we don’t believe that this specific estimation can be performed externally, given the critical need to use both public and private information (which we can’t share). Externally, it’s not even possible to know which accounts are counted as mDAUs on any given day.”

Elon Musk condemned this and assured that the deal “cannot move forward until he does (share the information about Twitter users)”.

Why is the Twitter deal important to crypto?

We can say for sure that Elon Musk is a known crypto user and is very active on the “Crypto Twitter”. Last year, his company Tesla bought $1.5 billion in Bitcoin (BTC), and they still have it. Additionally, he also revealed that he personally owns unknown amounts in BTC, Ethereum (ETH), and Dogecoin (DOGE).

As for this last currency, he’s been a popular promoter. His tweets about the dog-themed asset almost always had some impact on the price. Not to mention that he promised “to put a literal Dogecoin on the literal moon” during a mission by SpaceX.

With him on the Twitter lead, cryptocurrencies, in general, could have a starring role in this social media titan —or, at least, that’s what numerous crypto users believe. So far, Twitter implementiert BTC and ETH tips for authors, and the possibility to show Non-Fungible Tokens (NFTs) as verified profile pictures.  

If the deal goes on and Musk becomes the new Twitter owner, there are other interesting possibilities for crypto on the platform. Since Musk wants to verify real users, he could even use a blockchain identity solution for this. Hund and more coins for payments, additional coins for the tips, and even another billionaire buyout of BTCs by Twitter are inside the opportunities.

Nevertheless, now we need to wait for the deal to come (or not) to a good end. And that could happen in over six months.

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