Elon Musk would acquire 90.8% of Twitter, paying $54.20 in cash per share. Twitter is being cautious about Elon Musk’s proposal.

Elon Musk, the CEO of Tesla and SpaceX, made public his mistrust of Twitter’s directive and revealed a millionaire offer to acquire the company that created the social network. The tycoon offered at least USD 43 billion for the company, with which he plans to control and change it.

The news appeared on social media and quickly became a viral phenomenon. The information got shared by Musk on his Twitter account in a link to a prospectus from the United States Securities and Exchange Commission (SEC).

Elon Musk expressed that if his proposal does not receive consideration, he will have to reconsider his position as the company’s largest shareholder (9.2%), which he has held since April 4. According to him, it is his “last and best offer” to take over the company that Jack Dorsey left behind.

Musk is offering to acquire 90.8% of the Twitter stock for $54.20 in cash per share. This sum is a 54% premium before he started investing in the company and a 38% premium over the day before the public announcement of investment.

Given this situation, there are various reasons why Elon Musk would want to acquire Twitter

According to Musk, Twitter, funded in 2006, can enrich freedom of speech and expression on its platform. For him, it is a social imperative that every democratic system needs.

But since investing in and becoming the company’s largest shareholder, he highlighted that the company meets this social imperative the way it currently goes through.

Twitter is under the direction of Parag Agrawal, the current CEO. He got assigned to the position after the departure of Jack Dorsey last March, who got dedicated to his other company, called Block.

Agrawal said in an interview in 2018 that Twitter needed to focus less on freedom of expression and more on how times have changed, where the role of the company and social media is to determine who can get heard on the platform.

Musk points out that for Twitter to achieve its goal of honoring freedom of expression and becoming a platform fit for that purpose, it must first go through significant changes. But he distrusts the management to be able to make them happen.

In a statement sent to Twitter representative Bret Taylor, Musk expressed that if his offer doesn’t receive focus, he will have to reconsider his position as a shareholder in the company. This position occurs because he does not believe that the current managers have what it takes to encourage the significant changes that a company like Twitter deserves.

Thus, the businessman, who had access to the company’s executive board, shows discrepancies that, from his point of view, must get completely corrected through absolute control of the company focused on social networks.

Justin Sun, the creator of TRON, publicly supported the changes that Elon Musk proposed for Twitter. He said he fully supports Elon Musk’s reform efforts and would love to see Twitter go crypto-native and Web3 compliant.

By: Jenson Nuñez

Beginners should learn the basic knowledge of the market and avoid emotional trading before investing. They could also copy the trade orders of veterans or a demo account to ensure obtaining higher profits.

Recent international events have constantly contributed to the market crash on leading trading platforms. Although the dark stock market made many investors turn to Bitcoin as a store of value, many have left with regret.

In that context, it is convenient to receive advice on how to profit in the crypto market from experienced traders.

Understand the Crypto Market and the Environment Completely

Experts usually advise investing in cryptocurrencies only after a complete understanding of the various aspects of that market.

Of course, the final result will be satisfactory, as investors need to learn the basic knowledge of the field systematically. The same law applies to any other industry.

Since the crypto market is not separate from the general environment, investors must understand its changes completely. That would make them increasingly aware of when they have to enter the market or close their positions.

Avoid Losing Money Due to Emotional Trading

Newcomers tend to invest in positions that exceed their limits, hoping to make significant profits during market fluctuations. Due to emotional trading, they are immediately out of the market. For that reason, it is advisable to pay attention to that situation to avoid losing money.

When people first make a profit from the money they invest in the crypto market, emotions flood them. As there will always be highs and lows, they should only understand that those feelings are a part of the process.

Set Stop-Loss and Take-Profit Orders to Maximize Profits

While speculators want to make as much profit as in a volatile market, losers will seek to recover their gains. Investors can maximize their profits by setting take-profit and stop-loss levels, as it allows opening an order if there is a position.

A stop-loss is the maximum amount of loss someone can undertake, while a take-profit is the maximum profit they can settle. The latter allows fixing a price where the cryptocurrency can stabilize before dropping.

Choose an Investor an Investor with the Same Trading Strategy

After learning the basics, many people enter the market and opt for long or short positions. However, they do not get the results they want in the end.

For those beginners, the copy trading offered by some cryptocurrency platforms will be helpful. They will follow trade orders used by veterans as examples to ensure obtaining higher profits.

Get a Platform to Simulate Transactions and Experiment with Them

A demo account with some bitcoins can help beginner investors better understand market fluctuations. They can learn about floating profits and losses, set the investment ratio, and familiarize themselves with leveraged trading.

That tool helps people get familiar with the system before opening a real account. A demo account and a real one are only different in that the money in the former is not genuine.

Of course, knowing the trading price of a cryptocurrency also allows for making more sensible investment decisions. Bitcoin is trading at around USD 40,519 and has accumulated a 0.3% gain over the last 24 hours, according to CoinGecko.

By Alexander Salazar