Elon Musk is the largest Twitter shareholder. What does it mean for the web3 community on Twitter?
–– 13 Apr 2022
Just in case you haven’t heard the news yet – Elon Musk became the largest Twitter shareholder recently. He took a 9.2% stake in the $37 billion company. Twitter CEO Parag Agrawal confirmed in a tweet, welcoming Elon onboard.
He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!
How did the market react? Well, Twitter’s stock jumped 4% on Tuesday, April 5th, following the announcement. After Musk’s stake was revealed, Twitter had its best day since the company’s IPO in 2013, skyrocketing by more than 27%. Elon’s effect in action.
Twitter users jumped on to discuss what Musk wants to change on Twitter and also to share funny memes related to Elon Musk’s entry to the boardroom.
However, on Saturday, Twitter CEO informed that Musk would not, in fact, take the board seat.
“We were excited to collaborate and clear about the risks. We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders was the best path forward,” wrote Twitter CEO.
Agrawal did not mention however whether Musk gave any specific reasons for changing his mind about taking on the new obligation.
After the announcement, Twitter’s stock dropped more than 8% to less than $43 a share. Later that day, April 11th, the shares slowly rose to $47.17 a share.
Musk has not revealed any plans on what he is going to do as a largest Twitter shareholder. He clearly wants to implement some huge changes. But as a major shareholder with no board seat, what he does next is anyone’s guess.
Some believe that he might use his voice to promote free speech on Twitter and make it more user-oriented. Elon has been criticizing the company in his recent tweet for failing in his view to adhere to free speech principles. He also believes that users should be allowed to choose the algorithms that select the tweets they see, or build their own, instead of relying on Twitter to curate posts.
What does it mean for the Web3 community on Twitter?
It’s hard to predict what will happen next and what changes we should expect. Musk is a regular Twitter user with more than 80 million followers, and his tweets have a great influence on market prices and crypto trends. And now his influence has just skyrocketed.
Even though Elon is clearly not a web3 enthusiast, as it comes from his tweet, his voice still means a lot to the crypto community. Take the case of Dogecoin, for example. Elon has been actively promoting the coin on Twitter causing a huge increase in price.
In 2020, Musk posted a tweet that made the currency soar 20% in value.
Earlier this year, he announced that Tesla will allow people to buy brand merchandise using Dogecoin. That caused another price pump.
It’s clear that Twitter is a powerful tool Musk uses to promote his personal brand and as well as his businesses. We are excited to see what Elon is going to bring to the Twitter’s table. Hopefully, it won’t take him long to reveal his ambitions.