CoinMarketCap News, Oct. 5: Well... THAT Was a Waste of Time
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CoinMarketCap News, Oct. 5: Well... THAT Was a Waste of Time

Created 1mo ago, last updated 1mo ago

If you're feeling a sense of déjà vu, you're not alone. Elon Musk already signed a binding deal to buy Twitter at $54.20 a share many, many months ago.

CoinMarketCap News, Oct. 5: Well... THAT Was a Waste of Time

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Editor's Note: Well, THAT Was a Waste of Time

Molly Jane Zuckerman writes...

Elon Musk is going to buy Twitter for $54.20 a share, Bloomberg reported yesterday.

If you're feeling a sense of déjà vu, you're not alone. Elon Musk already signed a binding deal to buy Twitter at $54.20 a share many, many months ago. After Musk signed that binding deal, everyone thought: alright then, Musk will actually buy Twitter now for $54.20 a share. It was only after the binding deal was signed that Musk decided to take a step back and start looking for reasons to not buy Twitter for $54.20 a share, a situation that was actively culminating in a court case of Twitter vs. Musk.
Notice how many times I said "binding" and "$54.20 a share?" That is because the deal that Musk signed to buy Twitter is not the kind of deal that can be reneged upon without very good reason — it was binding.

The reasons Musk put forward in order to back out (or possibly reduce the price, as the rumors went) were:

1. Twitter lied about how many bots they had on their platform.

2. A separate Twitter whistleblower revealed security holes in the company's working.

3. Musk didn't seem to realize how binding the deal really was.

Elon's back-and-forth and pre-trial discovery documents did get the Crypto Twitter space (and the whole world, really) all aflutter over the past few months. Would Musk's love of Dogecoin mean that the social media platform could become DOGE Central? How realistic was Sam Bankman-Fried's proposal to Musk to bring Twitter to the blockchain? How funny was it that Musk sent the Twitter CEO a poop emoji on Twitter?

But all of that doesn't seem to matter now — a few weeks ahead of the trial, Musks' lawyers sent a letter to Twitter noting that they "intend to proceed to closing of the transaction" as it was originally intended.

While there is still time for Musk to pull some more tricky moves regarding the deal, it does seem like the window for sneaky maneuvers is now almost entirely closed and the deal will go through. I can't wait to see how Musk will fit into the Twitter work culture — will he welcome his new colleagues with more poop emojis, or maybe DOGE microtips?

Elon Musk WILL buy Twitter after all 😱

Elon Musk will proceed with a planned takeover of Twitter after all. Tesla's CEO is willing to pay $54.20 per share — matching the original offer made earlier this year. The proposal was made by letter, according to people familiar with the matter. Shares in Twitter spiked on Wall Street — rallying from $42.95 to $47.93 in eight minutes, and trading was temporarily halted. All of this comes after months of fighting between Musk and Twitter, with the billionaire claiming that the true number of bots on the social network is far higher than estimated. "This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning versus the Twitter board was highly unlikely," Wedbush analyst Dan Ives said.

Is the billionaire serious… or is he stalling? 😬

Analysts say this is an embarrassing U-turn and that it's a "bitter pill to swallow" for Musk. Many legal experts had argued that concerns over bots wouldn't have been enough to terminate the deal anyway — not least because this was one of his main motivations for buying the tech giant to begin with. A more pressing factor may have been the fact that Musk was set to undergo a deposition on Thursday and Friday — amid speculation that damaging revelations could come to light. But now, questions remain on whether the billionaire actually intends to go through with the deal — or whether this is yet another stalling tactic. Twitter will undoubtedly want the judge to ensure everything is airtight before the court case is wound up.

What is X, the 'everything' app? 🧐

In a cryptic tweet, Musk said that "buying Twitter is an accelerant to creating X, the everything app." But what exactly is an everything app? They haven't really made an impression in Western economies yet — but over in China, super apps have taken the economy by storm. Perhaps the best example is WeChat, which brings together social networking, payments and shopping in one place. This platform is now used on a daily basis by more than one billion Chinese consumers. There would be hurdles to overcome. Regulators in the U.S. and Europe won't be keen about a single app achieving too much dominance in the market. Another big question concerns whether crypto payments would feature in X, too.

Dogecoin's price has surged… but why? 📈

Dogecoin rallied when it was confirmed that Elon Musk's deal to buy Twitter was back on. The memecoin shot up from $0.6067 to $0.6566 in the space of an hour — up 8.22%. CoinMarketCap data shows DOGE has largely held on to these gains since the news emerged. Musk's affinity for Dogecoin dates all the way back to April 2019, when he declared: "Dogecoin might be my fav cryptocurrency. It's pretty cool." Earlier this year — before the billionaire made his first takeover bid — he contemplated whether DOGE should become a payment method for the premium Twitter Blue service. Beyond dog-themed altcoins, Musk's acquisition could be good news for the crypto industry overall — especially if there's a clampdown on bots and spam.
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