Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…
Elon Musk recently bought a 9.2% stake in Twitter and joined its board of directors to boot.
Though it should bear no logical correlation, the tech giant’s favorite cryptocurrency is rising in light of the news. Dogecoin, which Musk has displayed much fondness for, has a tendency to fluctuate in response to his word.
- Yesterday, Bloomberg revealed that the Tesla CEO had purchased a 9.2% stake in Twitter for $2.89 billion. Twitter’s stock soared 27% after the reveal, now trading above $50 apiece.
- Earlier today, Twitter CEO Parag Agrawal announced that Musk had joined the company’s board of directors.
- This comes a month before Jack Dorsey said he’d be stepping down from the same board, following his resignation as Twitter’s CEO in December.
- Dorsey himself is quite happy to have Musk’s assistance: “He cares deeply about our world and Twitter’s role in it,” he tweeted this morning.
- Meanwhile, Agrawal added that the Tesla CEO would “bring great value” to the board.
- After the news broke, Dogecoin has been performing phenomenally well. compared to the rest of crypto. While Bitcoin is down 3.2%, DOGE is up 11.0% over the last 24 hours.
- Before the official announcement, Musk polled Twitter about their feelings on Twitter’s adherence to free speech. The majority of respondents agreed that the company does not do so sufficiently. This led to speculation about whether Musk could help bring old voices back to the platform, such as Donald Trump.
- While no such promise has been made yet, Musk immediately offered to introduce an edit button to the platform.
Elon’s purchase of Twitter stock nearly doubled the value of Tesla’s investment in Bitcoin in February 2021 for $1.5 billion. However, the CEO’s brother has since said that they were “very ignorant” of Bitcoin’s environmental impact at the time of the purchase.