Illustrative Mechanics of Acquiring Twitter
This is not financial advice and is represented strictly for narrative purposes*
Alchemy Supports Decentrelon Raising The Next Digital Nation Circa 2022
The power of a fraction of the 400 million users of Twitter and a collective goal is much stronger than one man's bank balance.
Twitter currently has ~230 million monetizable daily active users and ~400 million monthly active users. With Elondrop, each of these users can join the movement to decentralize Twitter by going through a simple Tweet to Claim function in the DECENTRELON app.
The power in these numbers should not be understated. There’s inherent value in any application that gains a mass userbase, which is why technology applications, and even more so web3 platforms where users become holders of the token relative to it.
LooksRare (An NFT Trading Web App) has ~2k daily active users (currently valued at over $300k per daily active user based on the diluted market value of their token $LOOKS as of writing this article). It’s important to note that LooksRare was launched with the same free airdrop claim methodology we are using, except it was only available to current users of OpenSea (a platform with only ~40k daily active users).
For DECENTRELON, if we can get just 20% of daily monetizable Twitter users to claim their free airdrop, we would have over 50 million active users. This would represent the largest crypto onboarding event in history and would create the largest crypto wallet overnight (surpassing Metamask’s ~30 million active users). Assuming a conservative value of $2,000 per active user, this would imply a market capitalization of $100 billion, which is more than double the current acquisition price for Twitter. Just imagine the value possible if we truly unite together, with a common goal, and get a majority of Twitter to collect their free token allocation. Note that during prior free airdrop claims of this nature (OpenDAO and LooksRare) the conversion of people that claimed their free allocation vs. the total amount of people that had the opportunity to do so was 70%-80%.
“A decentralized Twitter could easily be as valuable as Ethereum's $350 billion [market cap], because Twitter already has a massive internal digital economy. A Twittercoin that served as the native payment instrument for ads and digital goods on platform would do well, and it could also be used to pay for a priority inbox: pay more to get to the top of someone's DMs, where the recipient can keep the funds or donate to charity.” – Balaji Srinivasan (The Elondrop)
Now that we have established that a market capitalization of $100 billion to $350 billion is a realistic outcome assuming support from the current Twitter community, let’s discuss the economics of an actual acquisition.
The DECENTRELON treasury holds 28.5% of total tokens outstanding, and the use of treasury funds will be voted on by the community. At a market capitalization of $170 billion 28.5% of tokens represent ~$48.45 billion dollars, which would allow DECENTRELON to put in a higher offer to the Twitter board to buy it.
In order to complete this deal, $Freebird holders would confirm via a vote on a proposal through the Freebird App to exchange treasury $Freebird funds with large institutions in over-the-counter (OTC) deals. Deals of this nature would be conducted with large institutions, hedge funds, private equity firms, venture capital firms, family offices, and wealthy individuals.
Once DECENTRELON's treasury of $Freebird token reaches towards the 160B market cap needed as the governing token of the new Twitter board we expect the actualization of the token price in reaching Balaji's projection thus providing a healthy and heavy potential return window from the acquisition of Twitter.
The more we can unite and support this movement toward decentralization, the more power we will have to achieve our goal. There is no ceiling for the token price, as it represents voting rights in what can be the future of web3 social media for the entire world. The mission begins with decentralizing Twitter, but the future is up to the community. There is a significant opportunity to create decentralized protocols not only for Twitter, but also for a basic crypto wallet, an NFT marketplace, and other existing social media platforms.