Tesla CEO and X owner Elon Musk has been vocal about his interest in cryptocurrencies. His public endorsements and criticisms of various digital currencies have often caused ripples in the crypto market. Nevertheless, he has reiterated that none of his companies will ever create a crypto token. This was also demonstrated in August, when he responded to a Twitter user who posted misleading headlines about X’s alleged crypto-token launch with “And we never will.”
Despite this, Musk has continued to show admiration for Dogecoin (DOGE), a cryptocurrency that started as an Internet meme. In 2021, he collaborated with Doge developers for an eco-friendly alternative to Bitcoin. His recent acquisition of Twitter, which he renamed X, for $44 billion and subsequent swapping of the platform’s logo for Dogecoin’s Shiba Inu dog image sent the coin’s value soaring by 20%. This move resulted in a $258 billion lawsuit for alleged insider trading and racketeering.
Musk’s crypto journey so far has been anything but straightforward. He has publicly confirmed his ownership of Bitcoin, Ethereum, and Dogecoin, indicating his belief in their long-term potential. Reports have revealed his involvement in the development of a crypto rival to Bitcoin, showcasing his active involvement in the space beyond mere investment. Moreover, his tweets have often caused drastic price fluctuations, most notably for Dogecoin. Despite this, Musk has maintained that he never directly told people to invest in crypto.
Given his recent statement about not creating a crypto token and his intended positioning of X as an all-encompassing financial app, it’s worth exploring the hypothetical scenario of him acquiring an existing crypto company. This could allow him and his companies to enter the space without the need to build a platform from scratch. It could also provide him with an existing user base and a tested infrastructure. While this remains speculative, a possible target could be a platform related to Dogecoin, or a company offering a wide range of services such as an exchange platform or a blockchain technology provider.
An acquisition by Musk would likely have a huge impact on the crypto industry. It could bring additional legitimacy to the space and attract more institutional investors. However, it could also lead to increased scrutiny from regulators. For Musk’s existing ventures, integrating cryptocurrencies could offer new possibilities. Only time will tell if this hypothetical scenario comes to fruition.