Published: 17.04.2022
Article reading time:
3 min.
The co-founder of Ethereum believes that the acquisition of Twitter by the most famous billionaire will have a negative impact on the social networking market in the future.
The creator of the second largest cryptocurrency by capitalization Vitalik Buterin in response to Elon Musk’s message about the acquisition of social networking platform Twitter for $43 billion declaredwhich has nothing against the similar desire of the owner of Tesla and SpaceX – however, the takeover of the social network operator may set the wrong example for other large investors.
Don’t oppose Elon running twitter (at least compared to status quo), but I do disagree with the more generalized enthusiasm for wealthy people/orgs hostile-takeovering social media firms. That could easily go *very* wrong (eg. imagine an ethically-challenged foreign gov doing it) https://t.co/LDqjXh3xCK
— vitalik.eth (@VitalikButerin) April 15, 2022
“I don’t mind Elon running Twitter (at least compared to the status quo), but I don’t agree with the general enthusiasm for wealthy people/organizations hostilely consuming social media. For example, imagine a foreign government doing this with ethical issues,” Buterin wrote.
The Ethereum co-founder added that if a shareholder has a 5% stake in a company, then he is not able to have a strong influence on its development. If its share increases to 50%, then the ability to control increases more than 10 times, which causes concern for the future of the company.
Buterin’s statement did not go unnoticed. Binance CEO Changpeng Zhao answered him that, they say, everything is not so simple:
This is how capitalism works, right? The “poison pill” on the other hand, sounds unfair. The board seems to be protecting itself (power/control) over the interests of all the investors. Anyway, I am sure there is more than what’s on the surface.
— CZ
“This is how capitalism works, right? On the other hand, “poison pill” sounds unfair. It looks like the board puts self-protection (power/control) above the interests of investors. In any case, I am sure there is something more than what lies on the surface.
Elon Musk has filed with the SEC to acquire Twitter, citing that the social media giant should be turned into a private company. It comes less than a week after the billionaire acquired a 9.2% stake in Twitter, making him the social media giant’s largest shareholder and eligible to sit on the board of directors.
A few days later, Musk stepped down from the board and said Twitter had “extraordinary potential” that he could help unleash. After Elon Musk was suggested a “poison pill” – a method of protection against a hostile takeover of the company. Shareholders in this case are given special rights that allow at some point to acquire shares on very favorable terms, while the transaction remains unprofitable for a potential buyer.
Vitalik Buterin actively expresses his opinion and interacts with the Twitter audience. In February, the co-founder of Ethereum, amid the blocking of bank accounts of protesters in Canada, drew attention to the usefulness of cryptocurrencies in such situations and tweeted that cryptocurrencies are needed when the authorities do not comply with the law.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
