Crypto Community Welcomes Musk Twitter Bid as Obstacles Emerge
Categories: Crypto News US
Twitter’s board does not welcome Tesla chief Elon Musk’s bid to buy all the shares of the company and is reportedly preparing a ‘poison pill’ defense strategy that would prevent a hostile takeover. One option considered by the board to stop Elon Musk from buying Twitter is a so-called shareholder rights plan that would allow existing shareholders to purchase more shares at a discount. The result would be a dilution of the stake held by the party seen as ‘hostile’. Another option considered is reportedly to call the offer too low. The information was obtained by Bloomberg, citing anonymous sources “with knowledge of the matter.”
According to these sources, Twitter’s board could announce its ‘poison pill’ already later on Friday. The information is notable given that Jack Dorsey, Twitter’s former CEO. The information is notable given that Jack Dorsey, Twitter’s former CEO who welcomed Elon Musk’s interest in Twitter earlier this month, still remains on the company’s board until his expected departure later this year.So far, at least one major investor in Twitter, the Saudi Arabian investment conglomerate Kingdom Holding Company, controlled by Prince Alwaleed bin Talal, has rejected the bid, saying it does not represent "the intrinsic value" of the company.
Twitter could be ‘a payments business’
Commenting on the potential deal in an interview with CNBC on Thursday, Jack Mallers, CEO of the bitcoin payments app Strike, said he supports the deal. He noted that Musk now has an opportunity to turn Twitter into “a payments business,” and said it would have “a lot of advantages over incumbents like Chase.” Meanwhile, the popular economist and crypto trader Alex Krüger also offered his opinion, saying in a tweet on Friday that it is “crystal clear” that Twitter’s board should accept the offer.
Lastly, according to Sam Bankman-Fried, CEO of the crypto exchange FTX, a decentralized version of the social network could be an alternative solution to the issue of how much moderation is needed on social media. Following yesterday’s bid, shares of Twitter fell 1.7% on Thursday. The price drop is believed to reflect a view in the market that the deal may not go through after reports that Twitter’s board will fight against it.
Elon Musk's Twitter bid has created blended responses inside the crypto local area. While certain individuals have invited his inclusion and impact, others have communicated worries about the potential snags that might emerge accordingly.
Elon Musk's tweets altogether affect different digital forms of money previously. His assertions about Bitcoin, Dogecoin, and other computerized resources have caused huge cost changes and drawn in significant consideration from financial backers and the overall population. A crypto fans value his capacity to carry standard regard for the business and view his tweets as a wellspring of diversion.
Be that as it may, there are likewise worries about the possible downsides of Elon Musk's Twitter impact. One essential concern is the unpredictability brought about by his tweets. The crypto market is now known at its cost swings, and Musk's comments can worsen this instability, prompting capricious and at times inconvenient impacts on financial backers.
Another issue is the discernment that Elon Musk's tweets may unduly impact the market, making an undesirable dependence on a solitary person's perspectives. This could sabotage the major standards of decentralization and democratization that digital currencies expect to maintain.
Moreover, there have been occurrences where Elon Musk's tweets have been deceiving or mistaken, prompting disarray among financial backers. His abrupt inversion on Bitcoin, for instance, caused huge market strife. Such eccentricism and absence of clear correspondence can dissolve trust and make difficulties for those attempting to explore the crypto space.
Regardless of these worries, it is quite significant that the crypto local area is different, and conclusions on Elon Musk's association fluctuate generally. Some accept that his commitment carries perceivability and reception to digital forms of money, while others stay wary and really like to depend on more settled market basics.
All in all, while Elon Musk's Twitter bid has been met with energy by certain individuals from the crypto local area, there are arising obstructions and concerns in regards to the effect of his tweets available's steadiness and financial backer opinion. It is not yet clear the way that the local area will explore these difficulties and whether there will be any changes in light of Musk's impact.