Twitter payments at risk as Elon Musk’s days as CEO number

Twitter’s role in digital currency payments may take a back seat as Twitter users ask Elon Musk to quit.

More than half of respondents to a Twitter poll voted that Musk should step down as CEO after 53 days of turmoil at the social media company.

Elon Musk stands to lose $30 billion

Kasturi, after ruffling feathers with drastic policy changes at the microblogging company, vowed to act according to the election results and mass layoffs,

At press time, Elon Musk had not quit and warned users that social media bankruptcy was imminent. He did not name a successor, saying “no one wants the job who can actually keep Twitter alive.”

Despite nine weeks of turmoil, Musk is taking a significant risk by putting his fate in the hands of Twitter users. If the next leader fails and Twitter files for bankruptcy, Tesla CEOs will jointly stands to lose About $30 billion in equity investment. Additionally, he would lose control of the company.

When Elon Musk took over Twitter in late October 2022, the company was hemorrhaging advertisers and spending about $1.2 billion annually on sales and marketing. Musk is laying off 3,700 employees assessmentd will cut the social platform’s annual spending by about $860 million.

Elon Musk receives endorsement from Buterin, Friedman

Crypto Twitter Responds Mostly Positively To Musk’s News Ethereum Co-founder Vitalik Buterin said he respected Musk’s decision.

Crypto podcaster Lex Friedman echoed Buterin, calling it a “strong move”.

Binance CEO Changpeng Zhao and MicroStrategy Executive Chairman Michael Saylor both discouraged the move, with Zhao encouraging Musk to “certainly stay put.”

After taking over Twitter, Elon Musk faced a terrifying prospect in making the company’s math work. Their leveraged takeover, led by Wall Street darling Morgan Stanley, added nearly $500 million to Twitter’s annual debt obligations, straining the viability of a company that hasn’t turned a profit in the past decade.

Wall Street titan Morgan Stanley helped Elon Musk finance its acquisitions from Bank of America and Barclays with a secured loan at a floating interest rate pegged to the federal funds rate. The riskiest loan attracts a maximum interest rate of 11.75%. All told, the loan would net lenders $1 billion per year in interest payments.

To keep the company afloat, the incoming CEO must raise equity, buy back debt or use his own funds. In addition, they will need to restore advertiser confidence, which was taking a beating following Musk’s takeover, as companies were unsure of the content that would appear with their ads.

Are Twitter Payments Doomed?

Elon Musk’s resignation will also leave Twitter’s grand ambitions to turn itself into an “everything app” uncertain. An integral feature of such an app, modeled on China’s WeChat, would be a robust payment processing system, first indicated in Twitter’s November 2022 registration with the Financial Crimes and Enforcement Network (FinCEN).

After filing, previous ties to oysters dog coin fueled speculationn that soon there will be social media platform Provide users with the ability to make payments using DOGE,

Musk added to the rumors on December 4, 2022, twitter space, where he said it was a “no brainer for Twitter to have both fiat and crypto payments.” A Twitter app sniffer previously claimed that the social media company was “working on coins.”

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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