Last week, Elon Musk bought Twitter. Many people think it was a terrible idea, that he overpaid billions, and that may lead to the platform’s downfall or even his own.
However, during the lawsuit leading to the acquisition, many of his text messages were leaked, giving us a good idea about where he wants to bring Twitter.
If he’s successful in this, I believe Twitter could be the first global crypto product and lead to mainstream crypto adoption. For you and me, this could potentially turn out to be a low-risk, high-reward investment play.
Leaked Texts
Musk has long complained that the two most significant issues with Twitter are spam bots and censorship.
In a message to Parag, Twitter’s ex-CEO, he explains that placing Twitter on a blockchain would be sure to make it censorship resistant.
In a group message, he explained that he could require users to pay 0.1 DOGE coin per Tweet (about 0.01$). The price is irrelevant to most users who post a few times a day, but the spambots would end up paying a lot, thus eliminating them. This idea of using micropayment to eliminate spam has been a long-standing idea in the tech industry.
Elon Musk has always been a fan of DOGE coin. Promoting it and tweeting memes about it. He said it could become the leading cryptocurrency because the most entertaining outcome is the most likely. As of January this year, Tesla now accepts DOGE as a payment method for merch.
Last week, Jane Manchun Wong, who is well respected for her trustworthy insider info at Twitter, mentioned that Twitter has indeed started to work on a crypto wallet.
Another interesting point: CZ, Binance’s CEO, which is the largest crypto exchange in the world, has contributed $500M to Twitter’s acquisition.
It is very likely that he will join the board and bring his crypto expertise to Twitter. However, this could also mean Binance’s cryptocurrencies — BUSD or even BNB — could be adopted by Twitter instead or in addition to DOGE.
The Everything App
Earlier this month, Elon mentioned that his acquisition is an accelerant to creating X, the everything app.
One of Elon Musk’s earliest companies was X.com, which was meant to be the first online bank. Eventually, the company merged and became PayPal, with Elon as CEO. Elon mentioned he always preferred to keep the name X. In 2017, he bought back the domain name from Paypal.
More recently, he mentioned interest in making X.com a social platform.
In another interview, he explains how he could turn Twitter into the WeChat of the West. WeChat is a Chinese Super App, which means that it is used to do pretty much everything in people’s day-to-day life. It’s used for messaging, but also for payments and e-commerce.
Given Elon’s past experience with payment as CEO of Paypal, I believe it’s very likely that he will try and pivot Twitter towards a crypto-powered super app.
The Play
If Twitter successfully becomes a payment platform, with DOGE as it’s main currency, this would be the first global use case for crypto adoption. There could be a massive 100x, or maybe 1000x upside for DOGE holder.
Prior to that, Twitter would most likely buy a significant position in DOGE, and make billions from the price going up, turning his very costly acquisition into a very profitable one.
People are onto this. Since the acquisition of Twitter, DOGE is up 125%. Still, if this were to happen, I believe a small investment in DOGE as of today could be a very low-risk, high-reward play.
Read More about Elon and Jack Dorsey’s vision for a Decentralized Twitter
