Dogecoin explodes as Elon Musk moves into Twitter HQ

Elon Musk, the CEO of Tesla, said in a conference with the bankers responsible for funding the Twitter transaction that he intends to complete the acquisition of the social network on Friday. This news has caused the price of Dogecoin to increase by 12% so far today, to reach $0.068 USD.

This news led to a surge in the price of Twitter shares, reaching Musk’s acquisition price of $54.20 per share. Similar to Twitter, Dogecoin saw a spike that allowed the token to surpass its previous low of $0.059.

The recent developments, according to Bloomberg, may suggest that Musk is close to finalising the purchase before the court-mandated deadline of October 28.

In addition, Changpeng Zhao, a Binance adviser, has claimed that he aims to assist Musk with the purchase of Twitter.

The purchase’s worth of $44 billion has sparked worry in Washington about the possibility of foreign participation.

When asked whether he would comply with Musk’s promise, the Binance adviser said, “I believe so.” 

As part of its aim to usher in the era of Web3 and social media and news websites, Binance stated in May that it had contributed $500 million to Musk’s proposed purchase of Twitter.

Dogecoin and its expansion

Elon Musk has recommended utilising Dogecoin as a payment mechanism on social media, so if the partnership with Twitter is successful, Dogecoin will undoubtedly gain popularity.

Musk, a backer of Dogecoin, tweeted “updates” in reaction to the cryptocurrency’s most recent core refresh. Shafil Alam, a Dogecoin developer, argues that TorV3 support remains a critical protocol improvement for Dogecoin.

Mishaboar, a Twitter account devoted to Dogecoin, wrote the following about the update: 

Hey #Dogecoin: important work being done by @alamshafil, @patricklodder and @KBluez to provide more privacy and anonymity to node operators by adding TorV3 support.

Are you a #crypto developer? Join the development efforts on the #Dogecoin Github repo. https://t.co/oBKGBJImAl

— Mishaboar (@mishaboar) October 26, 2022

Musk warming to his new role

Elon Musk’s profile no longer describes him as a perfume merchant; he is now the Chief Twit. With over 110 million followers, he already had a portion of it, but he is now on the verge of becoming the owner.

The modification to his social media account is the most recent sign that he is about to complete the $44 billion acquisition of the firm, and Musk appeared on Wednesday at the company’s headquarters in San Francisco.

Therefore, it seems that there will be no shocks this time. Since April of last year, when he announced his entrance into Twitter’s capital, the wealthiest man in the world, the billionaire creator of PayPal, Tesla, and SpaceX, among other firms, has been constantly changing his mind.

Musk astonished everyone when, during the procedures before the trial for breach of contract, it was his time to make a statement by stating that he was once again accepting the operation.

In spite of this, it took him three weeks to get the finance and negotiate the deal that puts an end to the most contentious business operation in recent memory.

The modification to his Twitter profile is not the only indicator. He visited the company’s headquarters in San Francisco on Wednesday and posted a video showing himself putting a sink into the network.

Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7

— Elon Musk (@elonmusk) October 26, 2022

In addition, the business magnate is scheduled to address the workers on Friday, according to a statement given to staff by a directive and reported by the Bloomberg agency. 

Twitter CMO Leslie Berland stated in the message, 

“Elon is in the San Francisco office this week meeting with folks, strolling the hallways, and continuing to immerse himself in the critical job you all do.

“This is only the beginning of many meetings and discussions with Elon, and you will all hear directly from him on Friday,” she continued.

The presence of Musk is reason for anxiety for Twitter employees when it was disclosed that he issued a note to investors stating that he intends to downsize the staff by 75%, or around 7,500 people.

Musk also wants to increase income and investigate subscription opportunities. Potential victims include individuals who work in content monitoring, as Musk wants to be much more permissive since he considers himself a “free speech absolutist.”

This, however, may result in the proliferation of misinformation, false news, and hateful comments.

For instance, the billionaire favours restoring former President Donald Trump, who is now on his own network, Truth Social.

It is unclear if he wants to return to Twitter, since doing so would be devastating to his alternate network. Musk intends to transform Twitter into an all-in-one app.

“Buying Twitter is an accelerant to creating X, the everything app“, was the first tweet of the billionaire after resuming the plan to acquire the social network for $44 million.

In the past, the businessman has expressed his admiration for the Chinese application WeChat, which has evolved from a messaging service to a multinational platform with means of payment, electronic commerce, health, and subscription management for all types of services, which have become nearly indispensable to daily life in China.

This week it came to light that Musk and his team were meeting with banks to get financing for the operation, and that during those meetings they informed the banks that the acquisition was proceeding and that they expected to conclude it by the deadline.

Some of the investors that joined forces with Musk for the purchase are also preparing the finances they must distribute.

According to Wednesday’s Wall Street Journal, the transfers have already been initiated to finalise the transaction. The share price of Twitter is approaching $54.20 a share, which stockholders will get.

The acquisition is finalised (barring a huge last-minute surprise) at a time when advertising is poor and the economy is worsening, as seen by the results of Meta, the Facebook group, whose profit has dropped by half over the last three months.

In addition, the increase in interest rates inflates the cost of the business. Musk has everything to lose in the event of a trial, but he has chosen to proceed without resorting to such extremes.

Why is the Twitter transaction now accelerating?

Elon Musk must acquire Twitter by this Friday at the latest if he wants to avoid a trial against the social network in which he is presumably the loser.

The year’s most infamous business dispute might finish this week or, failing that, enter a new chapter, with the two sides facing off in a specialised court in the state of Delaware.

Musk promised in April to acquire Twitter for around $44 billion, but then reneged, causing Twitter to sue him to enforce the deal.

While the trial was being prepared, the CEO of Tesla attempted to negotiate a reduction in the cost of the business, but Twitter refused.

Eventually, as litigation approached, Musk gave up and declared he would terminate the operation under the original conditions.

This occurred at the beginning of October, and since then the parties have been attempting to agree on all the specifics; but, as the crucial deadline of October 28 approaches, the acquisition has not yet been finalised.

The deadline assigned to Musk by the presiding court to finalise the transaction if he does not want the trial to continue expires. The majority of experts predict the social network will succeed.

Twitter, despite Musk’s request and as a precaution against any unexpected surprises, elected not to drop the case until the acquisition became effective. 

If this does not occur, Twitter will petition the court to compel the billionaire to comply with the terms of the agreement.

Musk awakens

Musk has been unusually quiet on Twitter in recent weeks, after a summer of nonstop commentary on the social network and his purported difficulties in stalling his acquisition.

Now, the rare mentions he makes to Twitter are rather favourable, as as when he highlighted Twitter’s “great potential” during Tesla’s quarterly results presentation last week.

What challenges might Musk encounter in completing the acquisition? 

As soon as Musk indicated earlier this month that he was finally moving through with the purchase, money became the primary obstacle.

The richest man in the world had initially negotiated with several banks to help him pay for the purchase with loans of several billion dollars.

However, the months of fighting over the operation damaged the image and value of Twitter, which, combined with a more complicated economic situation, led many analysts to believe that the entities might be hesitant to provide the necessary funds.

Unexpectedly, the US government may also provide a potential obstacle, as Bloomberg reported this week that the Joe Biden administration is examining the idea of subjecting the operation to a national security assessment.

This information came to light after Musk made multiple pro-Russian statements on the war in Ukraine, which were heavily criticised by the Ukrainian government and others.