Twitter has taken legal action against Elon Musk after the Tesla and SpaceX CEO terminated the deal to buy the social media platform. The lawsuit aims to coerce the billionaire into close the deal as agreed before.
The complaint was filed on Tuesday, July 12, in the Delaware Court of the Chancery, alleging that Musk disobeyed the terms agreed between himself and Twitter. The complainant says Elon Musk “repeatedly disparaged Twitter and the deal.”
The development comes only days after the electric car CEO communicated that he wanted out of the $44 billion acquisition of the social media company following an earlier suspension. Among the reasons Musk’s lawyer, Mike Ringer cited the deal’s termination in the letter is that Twitter failed to produce information about spam bots. Spam bots are fake accounts running on the social network.
As most of Twitter’s money comes from ad sales, one of the most crucial metrics for the company is the number of people seeing these ads. This data is critical to Twitter’s business and financial performance. According to the recent lawsuit, however, Musk’s claims are a “pretext” without merit.
An excerpt from the court document reads:
“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.”
According to Twitter, since the Father of Dogecoin signed the merger, he has constantly trivialized the social media giant, causing business risks and plunging its stock price. Noteworthy, Twitter stock recorded $54.2 before the DOGE advocate made his bid and was $34.06 by July 12.
Before the merger contract Musk had good words for the social media site saying “Twitter has tremendous potential, and I look forward to working with the company and the community of users to unlock it.” Twitter was taking promising initiative with NFTs, bringing the digital collectibles to the timeline as hexagon-shaped profile pictures. For just $2.99, the company intimated that users could get into the Twitter Blue subscription on their iOS devices.
gm!
You asked (a lot), so we made it. Now rolling out in Labs: NFT Profile Pictures on iOS pic.twitter.com/HFyspS4cQW
— Twitter Blue (@TwitterBlue) January 20, 2022
The company’s adoption of NFTs could take the technology mainstream, but Musk is right that Twitter needs to add features and stop stagnation. In his opinion, the company can do so by doubling down on Twitter Blue subscriptions. Giving investors a taste of what they could expect if he took over Twitter, Musk committed to driving up the number of Twitter Blue subscribers to 69 million by 2025 and growing that score to 159 million by 2028.
As Musk was never an NFT-believer, his subscriber vision for the company was in the area of alternative features such as the “undo tweet” button, app customization, and ad-free articles, among other exclusive features.
Musk was positive about delivering huge growth in total Twitter users, promising to grow the platform to 600 million by 2025 and 931 million three years later.
Now that Musk has nullified his intention to buy the social media company, and with the ongoing lawsuit, concerns whether the company’s leadership will be distracted from Twitter development are valid. With Elon Musk “off” the cockpit, perhaps the company can move forward with NFTs and previous commitments meant to achieve more results for the social networking company.
In line with the general polarizing nature of blockchain-related projects, the introduction of NFT profiles on Twitter attracted utter disdain as recent criticism of non-fungible tokens exposed the extent to which the technology fails to deliver on its promises of decentralized power and ownership verification. Most of the NFTs in the market today cannot encode the ownership of the dogotal art on the blockchain; instead, the only element encoded is its receipt. One can argue that Twitter was wrong to legitimize a technology that can expose users to theft and fraud, among other dangers on the web.
Twitter may have to find something different with the NFT technology, as JPEG files for profile pictures alone are no longer enough. One direction the company can take is tapping from the real utility of these digital collectibles, such as what Battle Infinity presents.
Battle Infinity (IBAT) went live on July 12, debuting with a presale. The metaverse-based Play-to-Earn (P2E) gaming platform debuted with a 16,500 BNB hard cap to focus on fantasy sports. The P2E game allows players to form teams and engage in battles for top-ranking positions in the league. Platform users also earn from pool staking, which makes the Battle Infinity’s revenue source trustworthy.
Suresh Joshi, IBAT co-founder, expressed his excitement to take the project mainstream with an official presale event. The project builds from Axie Infinity, offering a more transparent approach to revenue generation, where Axie failed terribly. According to Joshi, “Battle Infinity is aiming high – we are the new Axie Infinity, but with transparent pools for players to tap into earnings.” The co-founder also highlighted that IBAT is “KYC’d on Coinsniper, which eliminates any rug pull concerns.
Now that Musk is out, the leadership at Twitter should take the opportunity to retrace their steps and resume all halted projects. They should also pursue new opportunities in the area of blockchain technology such as exploring the utility feature of NFTs. Battle Infinity is a step in the right direction, but players should take the time to find out more about the project from the Battle Infinity website and the Telegram group.
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This article was written for Business 2 Community by Nancy Lubale.
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Nancy is a successful finance, crypto analyst | Researcher and blockchain writer with many years of writing experience finance and blockchain fields. Nancy has been producing quality content for websites in the cryptocurrency industry including Vauld Insights, Coingape, Forexcrunch, InsideBitcoins and Economywatch. Her interests are in crypto asset research and… View full profile ›
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