Binance Invests $500 Million in Musk’s Twitter Takeover
Binance, the world’s largest cryptocurrency alternate by buying and selling quantity, stated it invested $500 million as a part of $500 million in Elon Musk’s $44 billion deal to purchase Twitter (TWTR), a small however vital transfer that fueled hypothesis the social media firm may ultimately be powered by blockchain expertise
“We wired the $500 million 2 days in the past, most likely simply as I used to be being requested about Elon/Twitter,” tweeted Binance CEO Changpeng Zhao, often called CZ. Binance is already stated to be forming a group to brainstorm methods blockchain and crypto can profit Twitter.
Will Twitter Run on Blockchain?
Musk, who has stated Twitter must be extra decentralized and tweeted “the chicken is freed” upon his deal’s completion, has lengthy toyed with the idea of linking blockchain to social media.
“The thought of blockchain free speech has been round for a very long time,” Musk wrote in a textual content message in March to former Twitter CEO Jack Dorsey. “The questions are actually about methods to implement it.”
Binance’s Backing For Musk’s Twitter
Binance first revealed plans to assist Musk’s acquisition in Might. CZ stated on the time that it might be a “small contribution to the trigger,” saying the deal would bridge social media and information into Web3.
The corporate’s contribution is tiny in contrast with investments from Morgan Stanley, Financial institution of America, and Barclays, every of which dedicated to at the very least $2.5 billion in debt financing for the deal. Different traders embody Sequoia Capital, Qatar Funding Authority, and Constancy Administration & Analysis.
The Backside Line
For Binance CEO CZ, the funding is a chance to implement Web3. Earlier this yr, he made it clear that the alternate’s assist is conditional, and that he would solely assist the deal if it was carried out. “If he is [Musk] off, we’re off,” he stated in an interview. Contemplating the drama tied to Twitter’s takeover, it will not be shocking if there are extra within the months forward.