With its announcement that it had contributed $500 million to Elon Musk's $44 billion purchase of Twitter (TWTR), Binance, the largest cryptocurrency exchange in the world by trading volume, stoked rumors that the social media business would one day run on blockchain technology.
Changpeng Zhao, the CEO of Binance, tweeted, "We wired the $500 million 2 days ago, perhaps right as I was being asked about Elon/Twitter. A team from Binance is reportedly being formed to think of ways that blockchain technology and cryptocurrencies can help Twitter.
Will Blockchain Enable Twitter?
Musk has long played with the idea of tying blockchain to social media. He has stated that Twitter needs to be more decentralized and tweeted "the bird is liberated" upon the completion of his agreement.
Musk texted former Twitter CEO Jack Dorsey in March and said, "The idea of blockchain free speech has been around for a long time. The main concerns are with how to put it into practice.
Binance Supports Musk's Twitter
In May, Binance first disclosed its intentions to back Musk's takeover. It would be a "modest contribution to the cause," CZ remarked at the time, adding that the agreement would link social media and news into Web.
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The company's commitment pales in comparison to those of Morgan Stanley, Bank of America, and Barclays, who each pledged to fund the acquisition with at least $2.5 billion in debt. Sequoia Capital, Qatar Investment Authority, and Fidelity Management & Research are some additional investors.
The conclusion
The investment presents a chance for Web3 implementation, according to Binance CEO CZ. He made it plain earlier this year that his support for the exchange is constrained and that he would only back the agreement if it was put into effect. In an interview, he declared, "If he's [Musk] off, we're off." Given the controversy surrounding Twitter's takeover, it won't come as a surprise if there is more in the coming months.