Elon Musk announced the cancellation of his $44 billion bid for Twitter on Friday, May 13.
Indeed, Tesla’s CEO stated that he was “awaiting data concerning the computation based on which bogus accounts and spam genuinely constitute less than 5% of users.”
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
As a result of this revelation, the company’s shares, which is traded on the New York Stock Exchange (NYSE), fell more than 10% before the start of the Wall Street trading session.
As a reminder, on April 26, Elon Musk initiated an acquisition procedure for the company Twitter (TWTR) by purchasing all of the company’s shares for $54.2 per share.
This amounted to a 38 percent financial gain for the shareholders at the time.
What is Elon Musk’s fascination with bogus accounts?
Twitter stated during the presentation of its quarterly results at the beginning of May that the social network has 229 million daily users and is thus monetizable.
Only 5% of them would be false accounts or robots.
Clearly, this information is critical for Elon Musk in calculating the platform’s future revenue from advertising or paid subscriptions.
Nonetheless, despite the uproar caused by the announcement, Tesla’s PDG has been forced to “re-affirm its commitment to the acquisition” of Twitter.
When the deal was announced, the American entrepreneur specifically stated his desire to combat bogus accounts and robots that plague the network.
At his level, Elon Musk is directly concerned about these accounts that imitate him in order to defraud users.
Why are false accounts a problem for cryptocurrencies?
This issue is especially noticeable in the world of cryptocurrency.
With the rise of decentralized finance (Defi) and non-fungible tokens (NFTs), several phony influencer accounts have emerged.
These frequently show tens of thousands of subscribers (mainly robots) and are occasionally approved by Twitter, which tends to calm investors.
They do, however, advertise fake enterprises whose primary purpose is to defraud users.