The new technology and cryptocurrency sectors are joining forces to salute the historic takeover of Twitter by the whimsical Elon Musk. An emblematic and uncontrollable character of the current economy, which annoys as much as it fascinates. But an operation that requires us to ask ourselves some essential questions. For it is still difficult to see this affair as anything other than a billionaire's whim, with 44 billion dollars. And above all, it is not enough to see the Dogecoin register a rise of more than 30% to justify all aspects of it at once.
This article could be summed up in one simple sentence: Elon Musk buys Twitter and DOGE explodes by more than 30%. But hopefully the thinking of investors in cryptocurrencies goes a little further than that. Because the rise of a proven shitcoin, even a popular one, is never a sign of anything truly positive. Even if this ultimately sums up the operation that the newest richest man in the world has just completed quite well.
Indeed, since yesterday Elon Musk has officially become the only master on board of the social network Twitter. A change of ownership as fast as improbable a few weeks ago. And an operation that triggers very different reactions, under the mixed applause of the crowd. So, between the enticing statements of the new owner and the possible problematic consequences, what should we learn from this affair?
Elon Musk: Sole master of Twitter
It all started on April 14, when Elon Musk announced on Twitter that he wanted to buy... Twitter. A procedure initially and almost immediately unwelcome by his board of directors, determined to block his way. But nobody (or almost nobody) says no to Elon. And under pressure to see him go directly through the shareholders, his offer was finally approved yesterday unanimously. All for a check of more than $44 billion, or $54.20 per share. But the actual date of completion - scheduled for later this year - still depends on the agreement of these famous shareholders. As well as obtaining the "applicable regulatory approvals" mentioned in the press release.
A historic purchase to be recorded in the annals of the new technologies sector. As a result, "a definitive agreement to be acquired by an entity wholly owned by Elon Musk." And a social network "taken back to Wall Street" in the words of its founder Jack Dorsey, who sees it as a "positive first step." For Twitter will become at the same time a private company, that is, under the exclusive and unilateral control of its new owner. And knowing the phenomenon, this could quickly cause some problems.
Twitter: Between centralization and freedom of expression
This is why the applause from the crypto scene, which is supposed to advocate decentralization, sounds like a false note. Because it's hard to do worse in terms of the amount of power held in the hands of one man. All in an almost cartoonish Web2 version. And a fact that only Jack Dorsey seems to keep in mind, while welcoming at the same time this record transaction. The latter seeing in Elon Musk, "the singular solution in which (he has) confidence." But can he really say the opposite?
And meanwhile, Elon Musk is selling his very personal vision of what the next version of the social network Twitter should become. With some very interesting proposals, like a hunt for fake profiles and bots that could do some good. But also a desire to change its current operating model, to make it more profitable. Because according to the latter, "Twitter has a huge potential" that he is committed to "make it happen."
And for this, his main objective is to apply a total freedom of expression that already hurts the ears. Because, as commendable as this will is, it quickly becomes the open door to a real spill of discriminatory or hateful comments. With an Elon Musk whose account should have been banned from Twitter months ago. And a vision that has nothing to do with the best possible future for Twitter, already polluted enough by haters.
Elon Musk + Twitter = cryptocurrencies?
Finally, this purchase of Twitter by Elon Musk seems to give wings once again to Dogecoin (DOGE). This crypto-currency he has been playing with for months, like a child with an ant farm. Tapping on it to see how they react, without worrying about the damage he causes in the ranks of investors too eager to follow him in his delusions. Because some people are already convinced that the DOGE is going to make its entrance on Twitter. And the worst part of this story is that there is no evidence to the contrary, given Elon Musk's lack of boundaries. Another obvious problem with his exclusive control and power that this social network will give him.
One only has to remember the real betrayal he inflicted on Bitcoin last year. Announcing that he would accept it as a means of payment for his Tesla cars, only to retract his statement a few weeks later for sudden ecological reasons. All this of course on Twitter. And even though the company holds over 40,000 BTC in its treasury ($1.6 billion). Which brings us to the second fantasy of investors in the field: an upcoming massive purchase of Bitcoin to enhance Twitter's cash position. And again, nothing is impossible in this business.