Dogefather is on the cusp of owning Twitter — here's what this could mean for the crypto universe

• Elon Musk has put up a bid of $43 billion to buy Twitter, which is now pending regulatory approval.
• The SpaceX and Tesla CEO’s Twitter takeover has already caused a rally in the price of Dogecoin and other meme coins.
• Coming at the helm of Twitter, Musk has made no secret of the fact that countering scam bots will be the first item on his to-do list after taking over the social networking platform.

Elon Musk has bought Twitter for $44 billion, and his bid is now pending regulatory approval. But the social networking site is already mulling over what this could mean for its ecosystem, especially when it comes to Crypto Twitter.

Dogecoin — the cryptocurrency that earned Elon Musk the nickname of ‘Dogefather’ — already saw a 30% surge in price along with other meme coins following suit after Musk’s takeover was announced. The acquisition helped Dogecoin make a comeback into the top 10 most valuable cryptocurrencies in the world by market value.

Fewer crypto spam bots on Twitter

Cryptocurrency scams have been a bane of Musk’s existence on Twitter for as long as anyone can remember. Fraudsters have been using the Dogefather’s good name to promote crypto-based scams since he first mentioned his love for crypto assets. In May last year, scammers impersonating Musk stole at least $2 million from investors using giveaway schemes.

And coming at the helm of Twitter, the Tesla and SpaceX CEO has made no secret of the fact that rectifying this situation is the first item on his to-do list after taking over Twitter.

According to him, Twitter’s spam problem is the “single most annoying problem” with using the service. Earlier this year, he even launched a questionnaire on Twitter asking his followers, “How long must this go on?”
Despite all his puffery, it remains to be seen what Musk has planned to help the situation beyond the solutions already put in place by Twitter. The crypto community, on the other hand, is eager to see what he puts out.

Building crypto-like concepts to counter hate speech

Content moderation is a complicated maze to maneuver and is hardly a problem restricted to Twitter. Other social networking sites like Facebook and YouTube have faced similar challenges.

Musk’s solution is to make the social network’s algorithm open to all. With Twitter’s governing principles laid bare for all to see, the tech billionaire’s next move will most likely be dictated by the public response, according to analysts.

On the one hand, the kind of trust that going open-source generates, may drive more crypto-like concepts to the platform. On the other hand, it may also raise a call for know-your-customer (KYC)-type authentication, which would take away from the privacy and anonymity that makes Twitter stand out from its counterparts.

The task for Musk will be to balance the importance of privacy versus the need for free speech.

The future of crypto remains uncertain with Musk at the helm

Musk’s love for crypto assets isn’t in question. “The true battle is between fiat and crypto. On balance, I support the latter,” he replied when someone asked him about people being mad at him for his influence over the crypto markets. Moreover, his appearance on Saturday Night Live (SNL) in May last year boosted Dogecoin’s price to its all-time-high of $0.73.

But, that doesn’t mean he loves everything crypto on Twitter — like, NFT profile pictures. He famously said that the hexagonal verification feature for NFT HODLers is “annoying.”

This begs the question around how much of Musk’s agenda will focus specifically on crypto assets and how much will focus on the nuances of sharing information on Twitter. Many on Reddit and Twitter hope that Musk’s $43 billion Twitter takeover may finally turn the crypto markets around. Others aren't so sure.

Either way, everyone is expecting unpredictable announcements from Musk over the next few weeks that is bound to impact the crypto market.

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