Elon Musk's social media empire, X has seen a significant drop in its value. According to an Oct. 30 report from Bloomberg, an internal memo and sources familiar with the matter reveal that X's daily active user count has fallen to almost 20% since Musk's takeover. Questions still lingers around the minds of Crypto enthusiasts that if there will be any future of cryptocurrency in Twitter.
The memo discloses that restricted stock units issued to employees were valued at $45 per share, which translates to a company value of around $19 billion. This is less than half of the $44 billion Musk paid for the company in October 2022.
Controversial Changes and Workforce Reduction
Since Musk took control, he has made several controversial changes to the platform. These include rebranding it as "X," altering content rules, and laying off approximately 80% of the workforce.
Loss of Popularity with Advertisers
These changes, along with Musk's outspoken presence on the platform, have also made the platform less appealing to advertisers. The platform has lost at least half of its advertising revenue. This impacted its overall financial health.
Debt Troubles Loom
With the significant drop in revenue, the platform is now struggling to manage its debt. It owes around $1.2 billion in interest payments on its total debt of approximately $13 billion.
Shift Towards Paid Subscriptions
Musk aims to rely more on paid user subscriptions. However, less than 1% of the platform's user base has opted for premium subscriptions. Musk received less than $120 million in annual revenue from this.
"Twitter is a friendly place for Dogecoin."
This tweet by Musk hinted at a potential link between Twitter and the popular meme cryptocurrency. Musk's past hints at Dogecoin are well-known, but this direct statement has raised questions about what this could mean. Despite Musk's backing, Dogecoin's value has fallen due to the overall crypto market slump. There was a surge in October 2022, but it didn't last.
Even after investing in Bitcoin through Tesla, it seems like Elon Musk finally gave up on crypto, and his focus is more on AI. A quarter-final report of Tesla 2023 showed that there's been no change in bitcoin holdings, maintaining its $184 million worth out of the $1.5 billion purchased in March 2021. This happened despite the progress made in shifting Tesla's Optimus robot training from code to AI. The unexpected underperformance in earnings due to market jitters raises questions about Tesla's financial strategy.
There is speculation that Musk’s weak financial planning might have rubbed off on X, formerly Twitter. Furthermore, Elon Musk has mentioned on X that he would invest more in AI instead of crypto. Questions arise about whether his ‘planned to be everything app’ will ever involve crypto or not.
There are some hopes that X will integrate cryptocurrency in some way in the future, which could further diversify its offerings. But there’s nothing certain as of now.
While there are challenges, there have been some positive additions during Musk's tenure. One of these is paying individual creators for their engagement through revenue-sharing payments.
Musk also intends to transform X into an "everything app". This is inspired by super apps popular in Asia like WeChat. This would expand the platform to include financial services, video calls, and other lifestyle features.
In summary, Elon Musk's ownership of X (formerly Twitter) has seen its value decline significantly due to various controversial changes, a drop in advertising revenue, and debt concerns. However, Musk has introduced some positive features and has ambitious plans for the platform's future. Watching the essence of crypto on X is a far-sighted and challenging dream. Enthusiasts can watch the time unfolding Musk’s changing precepts for digital assets.
Also Read- Elon Musk Denies Crypto Token for X Platform, Dogecoin Surges
