Binance CEO Changpeng Zhao recently stated that his company had made an investment of $500 million in Twitter because he is “extremely supportive” of free speech.
Changpeng stated that there were “very strong reasons” for investing in Twitter. With over 7 million follower count, Zhao is active on the social networking platform.
Zhao, aka CZ, revealed to a crowd at the Web Summit in Lisbon, “When we invest in a deal, we’re very comfortable if the deal goes through. We’re very comfortable if the deal doesn’t go through. We always want to get to a point where we’re in that position. Number one is that we want to be extremely supportive of free speech. Twitter is an important free speech platform.”
“I am a heavy Twitter user. I want to invest in products that are important for our industry”, said Zhao, adding that Binance intended to be a long-term investment in the company.
After months of twists and turns within and outside the courtroom, the deal to acquire Twitter was finally finalized on Thursday. After acquisition. Elon Musk fired the platform’s top executives. Zhao said that because Musk is “a pretty hard guy for me to predict,” he was “honestly” a “little bit surprised” when the deal finally closed.
Since Musk completely controls the board and decision-making in the now-private Twitter, it is unknown how actively involved minority investors like Binance might be. In the $44 billion acquisition, the majority of his co-investors include funds like Sequoia Capital, Fidelity Management, Andreessen Horowitz, and Brookfield.
In an effort to monetize the service and reduce Twitter’s reliance on advertisements, Musk announced on Tuesday that the social media network would charge $8 for its Blue service, which includes the highly desired “verified” badge. Zhao stated he agreed with the approach.
Musk appeared to have second thoughts about his dedication to cryptocurrencies as he put the Twitter deal together. The largest digital asset exchange in the world, Binance Holdings Ltd., contributed $500 million to Musk’s financing for the transaction in May and is reportedly putting together a team to investigate how cryptocurrency might benefit the social media giant.
In a string of text conversations made public as part of the dispute around the Twitter transaction, Musk initially suggested utilizing blockchain to support free expression and decrease spam on social media, only to respond later that “blockchain Twitter isn’t possible.”
Musk has a lot of issues with Twitter bots and spam, which led to a protracted court spat that placed his plans to buy the company at risk. The problem is especially crucial in the cryptocurrency industry, where spam accounts impersonate well-known individuals like Musk to spread the word about frauds involving bogus cryptocurrency giveaways.
However, some proponents of digital assets think that Twitter bots might be decreased by adopting blockchain. Musk’s desire to “authenticate all real humans” on Twitter may be promoted through an NFT passport or a blockchain-based identity verification tool.
When it comes to daily cryptocurrency trading volume, Binance is the largest crypto exchange in the world. It was established in 2017 by d developer Changpeng Zhao, who had previously built high-frequency trading software. After the Chinese government began to regulate cryptocurrencies more strictly, Binance eventually transferred its headquarters outside China.
I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.