Twitter can do what Facebook couldn’t: why the Elon Musk deal is so important for the crypto world

The cryptocurrency market reacted positively to reports of Elon Musk’s upcoming acquisition of the social network Twitter. Thus, according to CoinMarketCap, the value of the DOGE coin, which is actively supported by the businessman, increased by almost 8% during the day. Bitcoin gained 2% after this news and confidently passed the $20k level. In this review article, we will discuss why this news is so important for the cryptocurrency world.

The deal around Twitter

After a series of lawsuits, the head of Tesla said he wants to go back to his original agreement to buy Twitter at $54.20 per share and plans to close the deal on Oct 28. The deal will be worth about $44 billion, with $13 billion borrowed externally. Participants of the deal do not disclose the sources of co-financing. 

However, based on previously published information in the media, the cryptocurrency exchange Binance, Oracle and the venture capital company Sequoia publicly expressed their interest in supporting the acquisition. The parties formed the investment pool and were later joined by Saudi Prince Alwaleed Bin Talal Abdulaziz Alsaud, who stated his intention to buy 34,948,975 shares of the company for about $1.7 billion.

Why is this deal important for the crypto world?

This notable rise in Bitcoin and the overall capitalization of the crypto market is not accidental. The return to the deal allowed Twitter’s capitalization to renew the highs of the year and had a positive effect on the Bitcoin price. Elon Musk widely supports innovation in the cryptocurrency market. The social network under his leadership can become a tool for the mass adoption of digital assets and at the same time find a new source of monetization for Twitter.

Before Elon Musk published the closing date of the deal, there was information about the development of Twitter’s own crypto wallet. This fact indicates that the developers have plans to integrate cryptocurrencies. This is also confirmed by earlier leaks about the soon launch of a certain Tool X, which Musk himself announced recently.

It is likely that yesterday’s Bitcoin pump is far from the last. Digital assets may rise at the close of the deal on Friday. In the future, Musk will be interested in technological announcements, becoming the owner of this social network, which will have a positive impact on the stock price of Twitter and cryptocurrencies (which, as we said above, are planned to integrate soon). 

Just to remind you, Facebook previously failed to implement its Libra project as a crypto extension for its social network, but it looks like Twitter is close to doing so. And this, given Twitter’s huge audience, could be a real breakthrough for crypto!