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    Elon Musk's Twitter acquisition may have an impression on the social media and crypto industry

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on November 8, 2022 12:02 PM

    Updated on January 9, 2023 12:50 PM

    A increasing number of social media sites are including crypto and Web3 support, although perspectives differ on whether they are doing so for the sake of the ethos or for profit
    Elon Musk's Twitter acquisition may have an impression on the social media and crypto industry
    Source: Tradingclass.com

    Elon Musk has gained control of Twitter Inc., sparking sentiments ranging from hope to fear among users who are waiting to see how the billionaire will stamp his mark on the social-media network. Bitcoin Twitter is no exception.

    Musk's mixed relationship with cryptocurrency

    Musk, a prolific tweeter, has had a mixed relationship with cryptocurrency, appearing to embrace it one minute and dismiss it the next.

    That hasn't stopped industry advocates from envisioning a broadening of Twitter's blockchain features under his leadership, which would increase general usage.

    Twitter was purportedly working on its own cryptocurrency wallet, and with Elon Musk's recent $44 billion acquisition, many speculated that the social media platform might very well integrate a cryptocurrency wallet soon.

    Many analysts believe that the acquisition will greatly improve the cryptoverse.

    "Since Musk is pretty vocal about crypto, I believe this acquisition will be a game changer for the crypto market; it's only a matter of time before this comes into action," says Prayag Singh, co-founder of SOCLLY.

     

    NFT Tweet tiles

    In fact, one of the first services introduced during Elon Musk's tenure was a cryptocurrency service called NFT Tweet Tiles. 

    It was released on October 28, just one day after Musk assumed control of Twitter, and it allows users to purchase, sell, and display non-fungible tokens (NFTs) directly through Tweets.

    The feature is now in collaboration with four marketplaces: Rarible, Magic Eden, Dapper Labs, and Jump.trade. 

    It's worth noting that OpenSea, the world's largest NFT marketplace, has been excluded from this service for the time being.

    Musk's preferred cryptocurrency-Dogecoin

    Their joy is likely to have boosted interest in Dogecoin, Musk's preferred cryptocurrency, which has risen in the days building up to his eventually closing the sale.

    "If you're still not trying to understand crypto & meme coins after @elonmusk bought Twitter, you're going to be very disappointed," Joey Hickson remarked.

    "To be honest, I'm mostly backing Doge," Musk remarked recently on the "Full Send" podcast. As a result, it is not surprising that Dogecoin has increased by more than 107 percent in the last seven days.

    Bitcoin bulls, Jack Dorsey-Bluesky

    Twitter has also dabbled in cryptocurrency. One of the industry's most well-known Bitcoin bulls, Jack Dorsey, co-founder and former CEO of Twitter implemented a feature that allows users to receive tips in Bitcoin, established a Twitter Crypto division, and founded Bluesky, a project committed to establishing a decentralized social media network that is now an independent company.

    Twitter has launched Ether tipping, NFT profile images, and USD Coin stablecoin payments for a small set of authors since Dorsey's departure last November.

    Twitter Bots

    Binance followed Musk's lead a few days later, on October 29. The world's largest cryptocurrency exchange is assembling an entire team to investigate the present problems caused by Twitter bots.

    "Binance is forming an internal team to focus on how blockchain and cryptocurrency might aid Twitter and is actively exploring plans and strategies to help Elon Musk realize his vision. For example, how might we provide on-chain solutions to some of Twitter's difficulties, like as the current growth of bot accounts? We are currently in the early stages of developing a strategy” According to a Binance spokeswoman.

     

    Tesla to begin taking Bitcoin payments

    Elon Musk's relationship with cryptocurrencies has been volatile. Musk revealed in February 2021 that Tesla has purchased $1.5 billion in Bitcoin. He also indicated that Tesla would begin taking Bitcoin payments. 

    These were incredibly bullish indications, causing Bitcoin's price to skyrocket.

    Musk declared a few months later that Tesla will no longer accept bitcoin for car purchases, citing environmental worries about its mining process. Musk then opted to sell 75 percent of his BTC holdings at a loss earlier this year.

    Web3 appears impacting social networking

    Another area where Web3 appears to be having the most impact is social networking.

    Facebook has renamed as Meta, and its whole goal has switched from being a social networking platform to becoming the future doorway to the metaverse.

    Instagram, which is owned by Meta, has stated that it will provide NFT minting and trading services within the app.

    With 3 million wallet holders on the platform, Reddit, another popular social media platform, has become a hotspot for NFT trading.

    Reliance of social media platforms on advertisers

    In recent years, social media platforms have evolved into a consolidated host of data for millions of users, on which major businesses and companies rely to sell their products.

    The reliance of social media platforms on advertisers has resulted in malpractice at various social media companies. These platforms were discovered to be selling sensitive data about their users to marketers, and poor security measures have also resulted in data leaks and abuses of privacy rights.

    This is why Kayla Kroot, co-founder and creative director of decentralized publishing platform Koii Network, noted the current controversy around Musk's intentions to charge a $8-per-month subscription for the famed "blue tick," stating:

    "While the incorporation of cryptocurrencies into any major mainstream technological platform may be viewed as a positive move for adoption, the deep-rooted capitalistic impulses of social media businesses indicate that it would harm the industry in the long run." These integrations, if handled incorrectly, will drive away millions of potential users. One notable example is Twitter's contentious decision to charge verified users $8+ per month for Twitter Blue."

     

    Twitter's Web3 ambitions, according to Tom McArdle, chief executive officer of decentralized messaging provider Satellite.im, are a "typical wolf-in-sheep's-clothing moment for Web3."

    The increased interest in incorporating Web3 technologies into Web2 social media platforms has been recognised as a step toward greater adoption.

    Furthermore, Web3 specialists feel that social media platforms are merely banking on the trend rather than the Web3 ethos, which may eventually drive away actual crypto adoption.