On Twitter, that's all we talk about. Moreover, the media are also making headlines. You couldn't escape unless you lived in a cave.
For a few days, Elon Musk was Twitter's largest shareholder. Since then, the board of directors has taken steps to rein him in. Nevertheless, the Tesla founder is expected to have a significant influence on the social network. His investment will inevitably lead to major changes on the platform. He hasn't hidden this fact. This explains why he wanted to be the majority shareholder.
Without wanting to make too many projections into the future, we will explore here the various announcements that Musk has made about the future of Twitter.
The main question we'll be asking is how this would impact the cryptosphere on the one hand, and whether it might pave the way for the use of decentralized alternatives to Twitter …
Elon Musk and Twitter… a “tough” love story
To put things into context, we need to go back a little further than April 4th. That was the date on which serial entrepreneur Elon Musk (and incidentally one of the richest men in the world) made a substantial investment in Twitter.
To be more precise, Musk acquired approximately 9,2% of Twitter's outstanding shares, briefly becoming its largest shareholder. This takeover bid was not well received by the board of directors, which implemented what is known as a "poison pill"—a mechanism preventing Musk from exceeding the 15% ownership threshold.
Knowing Musk's character, it was to be expected that this announcement would have the opposite effect. He went even further, declaring his intention to buy ALL of Twitter's shares , and even to take the company private.
Beyond his investment, Elon Musk has always had a special relationship with Twitter. On the platform, there's even talk of the "Musk Effect." His tweets promoting cryptocurrencies like Dogecoin , but also Bitcoin, have indeed had a considerable impact on their value.
Another emblematic example of Elon Musk's shockvertising tactics was his tweet in which he considered taking Tesla private at $420. This tweet nevertheless led to a fraud charge and a $40 million fine from the SEC.
A history that prompts reflection on influence on social networks, and the contours of freedom of expression in the digital age.
How does Elon Musk plan to transform Twitter?
A few hours after tweeting his offer to the SEC (Securities and Exchange Commission), Musk gave a TED Talk . This was an opportunity for Twitter's new shareholder to share the motivations behind his takeover bid, as well as his plans for the platform.
Elon Musk, for example, stated that he considered Twitter to be the main marketplace of the digital world. Recalling his passionate relationship with the social network, he also affirmed that his investment was not motivated by financial gain, but rather by a desire to improve the platform, particularly its algorithm and business model.
Elon Musk's ambition matches his entrepreneurial background… to make Twitter the world leader in digital conversations! And to achieve this, he'll have several major projects to tackle…
➡️ Relax content rules to promote freedom of expression
It hasn't escaped anyone's notice that Elon Musk is a great advocate for freedom of expression. He even readily describes himself as an absolutist on the matter. And he hasn't hesitated to criticize on several occasions what he considers to be excessive content moderation on social media.
Recalling that freedom of expression is the foundation of a functioning democracy, Musk wants to make Twitter an agora where vital issues for the future of humanity will be debated.
He explained that he wanted to prohibit the deletion of comments that, while offensive, are nonetheless legal. In his interview, he stated that " If it falls into a gray area, the tweet has the right to exist ."
The first criticisms were quick to emerge. Many believe that this relaxation of the rules would open the door to trolls and other forms of cyberbullying. The measures proposed by Musk could also encourage the spread of fake news.
➡️ Create an edit option to allow editing of old tweets
Musk also plans to address a very popular request from Twitter users: the creation of an edit button that would allow users to modify content after it has been published. Even though this option already exists on other social networks (like Facebook or Instagram), this proposal has also sparked a heated debate. Some argue that it could be misused, allowing certain users to conceal their abuses or manipulate their audience.
Imagine for a second...All people could change their words depending on the situation...
➡️ Make Twitter's algorithm and code more transparent
Musk also stated his intention to make Twitter's algorithm more open. It would potentially be available on GitHub , allowing influencers to better understand how it works and potentially crack Twitter Juice.
Here again, Elon Musk's plans for Twitter are far from being unanimously accepted. While many have praised these efforts at transparency, others believe that sharing such a dense and complex algorithm with the general public would have very little impact. Without the underlying user data, which would not be made public, the algorithm would provide very few clues about how Twitter works. And the factors that lead to virality would remain as obscure to the average person as they are today.
If this information falls into the wrong hands, it could also backfire on social media users. Spammers of all kinds could exploit the system to manipulate their audience.
➡️Tackling army bot
Elon Musk also plans to tackle the proliferation of bots on Twitter. He wants to target fake accounts programmed to reply to or retweet posts on certain topics. It's a bold announcement, given that Musk's empire was partly built on the use of these bots , particularly to counter attacks against Tesla …
While he stopped short of announcing a plan to eliminate such bots, he suggested cracking down on fraudulent bots , particularly those promoting "Hustle" culture within the crypto community.
➡️ Ads on Twitter would be abandoned
To date, nearly 90% of Twitter's revenue comes from advertising . However, the social network is struggling to attract advertisers, who fear their campaigns could turn into a digital quagmire.
If Elon Musk succeeds in privatizing the company, it's clear it wouldn't face the same kind of pressure. He has, in fact, announced his intention to switch to a subscription model. Essentially, in that case, Twitter would become a paid service. For many people, this is inconceivable.
Given that Twitter has already moved in this direction by introducing its premium service last year: Twitter Blue . Available for $2,99 per month, it offers users additional features, including an undo button that allows them to delete their tweets before they are published.
Twitter, the Musk effect and cryptography
Musk's appointment to Twitter's board of directors certainly didn't go unnoticed. It was within the crypto community that the announcement generated the most buzz. Indeed, Twitter is one of the preferred platforms (along with Reddit and Discord) for crypto enthusiasts. It's also well known that the entrepreneur has a particular relationship with cryptocurrency, and that his pronouncements on the subject often have a considerable impact on asset values.
Researchers analyzed 67 tweets by Elon Musk related to blockchain. The assets mentioned by Twitter's new shareholder included Dogecoin (66%), Bitcoin (30%), and Ethereum (1,5%). Each mention had a significant impact on their performance.
The results show an increase in prices following Elon Musk's tweets. Most often, this lasts 45 minutes on average after publication before stabilizing.
Could Musk take advantage of his insider position to manipulate the cryptocurrency market?
Precisely because of this proven "Musk effect" on the cryptocurrency market , some fear his influence. The new Twitter investor might try to manipulate the crypto market . This hypothesis is certainly questionable given how cryptocurrency markets operate.
It's worth remembering that he literally caused the price of Dogecoin to skyrocket , even though it was a cryptocurrency that had never been taken seriously before him! He really pulled off a feat with that story… Such a wow , right?
While traditional markets are vulnerable to manipulation and stock prices can rise due to external factors, the secure parameters inherent in blockchain technology should largely prevent (or at least penalize) the actions of "bad actors" on the network.
According to the Blockchain Research Lab , Musk's tweets present " a conflict between the ideals of free speech, morality, and investor protection ." However, the "Musk effect" has been put into perspective, given the specific context in which these tweets were shared. For example, Musk typically tweets about Bitcoin when markets are down.
Furthermore, if he were to tweet more frequently about cryptocurrencies, it's highly likely that his pronouncements would have far less impact. Once the initial surprise, or shock value, of his statements has worn off, investors are expected to be much less reactive to Musk's positions.
So, should we be happy or worried about this takeover of Twitter?
Another important step Musk could take in the coming months is to push Twitter to buy Bitcoin as a treasury asset , something he has already done with Tesla and SpaceX. Given Twitter's prominence in American politics and culture, the company's acquisition of Bitcoin could be problematic, potentially having a significant impact on its value.
Other observers also believe it highly likely that Musk will integrate cryptocurrency payments into Twitter in some way . Late last year, Twitter unveiled a tipping feature allowing users to send Bitcoin to creators. Meanwhile, Tesla has begun accepting Dogecoin for purchases on its website. Dogecoin holders certainly hope that Musk's Twitter will follow suit.
More broadly, the crypto community is closely watching how Twitter, under Musk's influence, could play a role in the widespread adoption of decentralization. Particular attention is being paid to Bluesky, an internal project focused on creating a decentralized standard for social networks . Twitter co-founder and former CEO Jack Dorsey, another crypto advocate, sits on its board of directors.
In general, the crypto community is quite optimistic about Musk joining the Twitter board. They believe it will lead to wider adoption of Bitcoin, cryptocurrencies, and DeFi in general. For his part, Elon Musk has everything to gain from crypto becoming mainstream. It's worth remembering that last March, he declared he owned Bitcoin, Ether, and Dogecoin. And, importantly, that he had no intention of selling them.
Without making a fuss, he's become a guru for many crypto enthusiasts… His tweets and actions have a huge impact on a crypto's social engagement …
In short, we cannot neglect its power. Knowing how he's going to use it is another debate... Indeed, Musk is rich, of course, which already gives him a lot of power in itself. If we add soft power (which the media and social networks represent), then it can be explosive…
To be continued …
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