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Elon Musk Says Blockchain Twitter Is Not Possible, Here's Why

Fri, 09/30/2022 - 10:35
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Gamza Khanzadaev
Blockchain Twitter is not possible, explains Elon Musk as FTX CEO Sam Bankman-Fried was ready to participate in acquisition
Elon Musk Says Blockchain Twitter Is Not Possible, Here's Why
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As became known from a Business Insider report and court filings, the head of cryptocurrency exchange FTX, Sam Bankman-Fried, was interested in taking part in the purchase of Twitter, together with Elon Musk, and offered the founder of Tesla to transit the social network on the rails of blockchain.

FTX CEO's Advisor Texted Elon Musk About Buying Twitter

In response to this proposal, Musk explained that Twitter on blockchain is impossible due to the inability of the peer-to-peer network to support bandwidth and latency requirements. The solution could work if these peer-to-peer networks were absolutely gigantic, but then the network could not be decentralized, Musk explained.

The disclosure of the correspondence also revealed that Bankman-Fried was willing to invest around $5 billion in the deal, with overall valuations of Twitter acquisitions ranging from $44 billion to $50 billion. Talking to Musk about the FTX CEO's involvement in the Twitter purchase, the spokesperson also pointed to his commitment to founder Tesla's ideas about humanity, and that SBF, as Sam Bankman-Fried is abbreviated, is an important donor to the U.S. Democratic Party.

Bots ruined it, again

Elon Musk's possible purchase of Twitter was one of the most-talked-about events of 2022. The eccentric billionaire was planning to buy out the popular social network with his stated mission of ensuring free speech.

However, the multi-billion-dollar deal, which had already been approved by the company's management, collapsed after Musk clashed with Twitter over the number of fake accounts on the social network and his desire for a deeper audit of its user base. At the moment, the parties are resolving the tangle in court.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.