Monday turned out to be a big day for social media, as Jack Dorsey announced that he was resigning from his position as the chief executive of Twitter. However, he still retains the position of CEO of payments company Square Inc. Dorsey is quite well-known for his pro-cryptocurrency stance and has previously mentioned that he wants to focus more on Bitcoin. The head of research and managing director at Fundstrat Global Advisors’ explained why Dorsey’s departure from Twitter could actually prove to be a bullish move for the overall crypto space.
Jack Dorsey issued a letter to the Twitter team on Monday in which the former CEO explained that leaving was his own decision. The chief technology officer at Twitter, Parag Agrawal, was promoted to the position of CEO after Dorsey’s departure. But, it should not be forgotten that Dorsey still remains the CEO of Square Inc. and that his company is working on a number of bitcoin projects. The head of research and managing partner at Fundstrat Global Advisors’ Tom Lee believes that resignation of Twitter’s CEO can be a bullish move for the crypto market when he was questioned about the impact of this news on bitcoin and the entire crypto ecosystem.
Lee said that the most important thing to remember is that crypto is essentially the intersection of technology and financial services, which makes it about 60% of the economy. He elaborated that financial services is a massive market because it forms the other half of the GDP. He went on to say that since there wasn’t a lot of capital that could be dedicated to crypto innovation, it was people such as Jack Dorsey who can truly focus on developments. He also added that he doesn’t believe the crypto space has become overinvested as yet.
The managing partner said that the crypto space was still in its early days and it wasn’t just applicable to projects, such as Bitcoin and Ethereum. He said that it also applied to amount of businesses that were built around these digital currencies and crypto equities. Earlier this month, Twitter had announced that they were setting up a dedicated team that would focus on decentralized app and cryptocurrency. In June at the Bitcoin 2021 conference, Dorsey had stated that if he wasn’t working at Twitter or Square, he would be dedicating his time to bitcoin.
The former CEO of Twitter had emphasized that if bitcoin required more help than either of the two companies, he would leave them for the cryptocurrency. He added that there wasn’t anything more important in his lifetime. Speaking during the earnings call for the third quarter of Square Inc. this month, Dorsey said that they were dedicated to ensuring bitcoin reaches the mainstream audience and also strengthen the ecosystem and network at the same time. He stated that their goal was to make bitcoin the internet’s native currency. He revealed that there were numerous initiatives they had taken to achieve that goal and one of them was Cash App.