Until Twitter Clarifies Fake Accounts Acquisition is on Hold Says Elon Musk

Elon Musk has put his planned takeover of Twitter on pause until the fake accounts are better clarified by the social media platform.

Elon Musk took to the platform to say that the “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”

Tesla CEO Elon Musk, who has over 90 million Twitter followers, published a reference to a Reuters article estimating that fraudulent or spam accounts make for less than 5% of Twitter’s monetizable daily users that are highly active.

In April, Musk presented a cash offer to purchase Twitter for $54.20 per share, valuing the company at over $40 billion in total. Following the offer acceptance from the Border of Directors at Twitter, there has been a lot of conjecture regarding the company’s future path under Musk’s control.

Twitter’s “average monetizable daily active usage” for the first quarter was 229 million, up 15.9% over the year-ago quarter, according to the company’s earnings statement earlier in May. This statistic represents the number of daily users who consume advertising on the network, or the number of daily users from whom Twitter can profit.

According to MarketWatch statistics, Twitter shares plunged as low as 6.76% in light of the pre-market trade news, whereas Tesla jumped as high as 5.27%. Elon Musk may have a positive effect on the app in terms of spambots, which he highlighted in a press statement when his bid was approved, according to observers.

Musk said “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

Musk went on to say “they make the product much worse. If I had a dogecoin for every crypto scam I saw, I would have a hundred billion dogecoin.” 

During a TED talk in which Elon Musk appeared last month, he said that his top priority is “eliminating the spam and scam bots and the bot armies that are on Twitter.”

Fixing this problem is especially important for the crypto community, which has been afflicted by spambots and scams, with Musk personally being the object of multiple impersonation efforts in the past. It is yet uncertain what he will do to address the problem.