Musk’s acquisition of Twitter is destined to drive Web3 development, just as MEME disrupted traditional exchanges

“I Love Twitter”, “How much is it”, if you like it, buy it, said Musk.
On April 25, sources close to Musk said he would buy Twitter for $54.2 per share, valuing the company at $44 billion overall, in a deal expected to close this year.
Twitter was once popular for its new media properties, making it one of the most bullish social media platforms in the last digital economy. But the social platform then faced internal disagreements within the founding team, a less-than-expected YoY profit and no good technological innovation which lead to a bottleneck. Twitter’s situation is not unique in the U.S. social media world, and many former social media giants are facing similar difficulties. On the one hand, these companies reached an impasse in their innovation ability and their user penetration rate hit its limit, so they are no longer favored by speculative capital. On the other hand, outside capital is also looking out for them, hoping to cash in on their user resources and channels through horizontal or vertical mergers and acquisitions to form a larger monopoly.
The financial data shows that Twitter has been in poor operating conditions in recent years. 2021 revenue was of $5.08 billion, with a net loss of $220 million. Looking at its recent performance, Twitter has failed to achieve profitability for five of the past seven years. Musk’s arrival may really bring some new ideas and vitality to Twitter. There is no doubt that Twitter is still one of the most popular social platforms in the world, with 192 million daily active users. The number of Musk’s own followers on Twitter exceeds 80 million.
According to Musk’s statement, the main intention of acquiring Twitter is to make it a bastion of free speech — “a platform that is trusted to the greatest extent and is broadly inclusive is critical to the future of civilization”.
Earlier this month, Musk spent $2.89 billion to acquire a 9.2 percent stake in Twitter Inc. and became the largest shareholder. In fact, his move to increase his stake in Twitter began in mid-March and has been going on for more than half a month, only to be officially announced on April 4, catching the Twitter board off guard.
But Musk isn’t satisfied with being a majority shareholder: the takeover we’re discussing today means that Musk plans to have complete ownership of the company.
“I invested in this company because I believe in its future as a platform … but I now realize that this company in its current state is not going to grow and serve society as a whole,” wrote Musk in a letter to Twitter Chairman Bret “Twitter needs to be changed in a private way.”
It’s the same drama as when he took over Tesla by force.
Musk decided to buy all the shares of the company for $54.2, which is expected to cost a total of $43 billion. This price represents a 54% premium to Musk’s previous low-key acquisition of Twitter shares, and a 38% increase in share price compared to the previous acquisition when the results were officially announced. Musk believes this takeover is the best possible outcome for the company’s board and other investors, “This is my final offer, and if it is not accepted, I will reevaluate my status as a shareholder.”
Following the agreement between the two sides, Musk issued a statement saying that freedom of speech is the cornerstone of a functioning democracy and that Twitter is the public square of the digital age and it’s vital to the discussion of the future of humanity. I also helped make Twitter better by improving the product with new features, opening up the platform’s algorithms to enhance trust, fighting fake accounts and verifying all human users.
Prior to acquiring Twitter, Musk expressed his frustration with Twitter’s actions, such as randomly deleted and blocked accounts, denial of user rights to free speech, algorithmic monopoly, personal social data leaks, and more.
In the Web2 era, social media platforms operate under the monopoly of Internet giants. While platforms are growing and developing at a fast pace, operators are profiting from social data without any boundaries, while creators and users are always vulnerable, unable to prevent their personal data from being misused by the platform and unable to get reasonable revenue from it.
This time, the biggest implication of Musk’s entry into Twitter is to complete Web3 through Twitter, who will then take it to the next level in terms of innovation and growth combined with Web3’s future growth space.
This shows how creating a free, open and equal decentralized social platform has become the vision of many Web3 projects. Decentralized platforms based on blockchain networks are being upgraded with technology and models by fusing DeFi and DAO to create a new way to interact with decentralized finance — DEX.
Such projects try to return voice and data ownership to users, and promote community collaboration and co-construction (including censorship, distribution, etc.). Through the framework of DAO governance, creators can tokenize their influence and earn revenue through mechanisms such as content mining, avoiding the high intermediary fees of the platform. In addition, with the help of some privacy protocols, the problem of personal data leakage will also be solved properly.
The decentralized, de-trusted and tamper-proof characteristics of blockchain are well aligned with the goals of Web3.0: creating a new Internet that respects the concept of “individual value”. MEME Exchange based on Web3.0 has filled the gap of the current market and is a trend for future development. The user experience from MEME Exchange portal will include multiple categories and together with the multi-layered solution it will contribute to a many-to-many decentralized exchange ecosystem, which is a major benefit to the entire Web3.0 industry.
MEME Exchange wants to launch a new decentralized revolution to realize the vision of both DeFi2.0 and Web3.0. Breaking the boundaries between traditional centralized and decentralized exchanges, solving blockchain ecosystem challenges and taking trading to the next level. It offers not only a more robust user experience, but also exponentially improved levels of trading performance and scalabilities, such as releasing fragmented liquidity pools from multiple chains, offering better prices than competitors, a user-friendly trading experience with zero slippage, and lower Gas fees.
On MEME Exchange, users can connect to MEME without registration as long as they have a wallet, guaranteeing absolute autonomy and privacy by keeping their funds stored in their own wallets. Asset interaction is carried out through smart contracts which cannot be altered, ensuring 100% openness and transparency of transactions. Moreover, MEME exchange has been realized to support cross-chain, multi-chain, multi-currency and multi-asset transactions to achieve value flow, which greatly enhances the liquidity of decentralized exchange assets.
The decentralized and transparent Web3 network is what people really need. Perhaps, Musk’s acquisition of Twitter is an attempt to make Twitter a real asset by continuing to be the infrastructure of the next-generation Internet speech environment. In the same way, MEME Exchange wants to shape the future of Web3 exchanges.
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