Can Elon Musk transform Twitter into a financial giant?

Not long ago became known that Twitter has big ambitions. Namely, Elon Musk’s platform plans to offer crypto and stock trading services to clients. This is achieved through a collaboration with well-known trading platform eToro. Musk wants to make Twitter one of the largest financial institutions in the world, but how realistic is that ambition when we look at the current numbers?

Twitter after Elon Musk

At the end of last year, Twitter was taken over by Elon Musk under much fanfare. The deal was the talk of the town and Musk eventually had to pay a mere $44 billion to claim ownership of the platform. It soon became clear that Musk wanted to take a different course with the platform.

From a recent survey by ExpressVPN It turns out that there are currently about 354 million active users of Twitter who have made it their home. As many as 260 million users still log in every day! Initially, the acquisition of Musk also boosted the number of new users on Twitter. In the month following the deal, the number of downloads per day reached 125,000. This number is 42% higher than the same period a year earlier!

Still, it’s not all roses and moonshine. Twitter grew pretty consistently every year from 2019 to 2022. However, the forecast for the future of the Twitter platform looks less positive. For example, by the end of 2023, the number of active users on Twitter is expected to drop by 4%. It is even predicted that in 2024 the number of US users will fall by another 8%.

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The Twitter trading platform

These are of course quite worrying figures and testify to relatively large problems at Twitter after the Musk acquisition. Of course, it could also throw a spanner in the works with Musk’s grand plans for his social media platform. After all, how are you going to make Twitter the “biggest financial institution” if you lose a substantial portion of your active users every year?

Musk also flirted with the idea of ​​turning Twitter into a so-called “super app” in the past. An online ecosystem where users can use multiple different services. In countries such as China, such apps are very popular. Think of WeChat, where users can chat, post, bank and much more.

The introduction of crypto and stock trading on Twitter can have both positive and negative consequences. On the one hand, it could attract new users, interested in the ease of trading within a familiar environment. On the other hand, it may scare off existing users who are concerned about the security of their data or the mixing of social media and financial services. Musk will have to strike a delicate balance to satisfy both new and existing users.

To turn Twitter into a financial giant, Musk will at least have to reduce the number of users leaving the platform. If Musk wants to realize his huge ambitions for Twitter, he will have to break this trend as soon as possible.

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