As part of Elon Musk’s $44 billion acquisition of Twitter (TWTR), Binance, the largest cryptocurrency exchange in the world by trading volume, announced it had invested $500 million. This modest but significant action sparked rumors that the social media company might one day run on blockchain technology.
Musk Successfully Takes Over Twitter.
Musk completed his $44 billion acquisition of Twitter late on Thursday, gleefully tweeting, “The bird is liberated,” and promptly removing several top executives from their positions. After months of public and legal battles over the sale, this finally happened. Early sources state that the new owner has already drastically lowered Twitter’s c-suit. Twitter CEO Parag Agrawal, CFO Ned Segal, and top attorney Vijaya Gadde, who played a key role in the decision to block former President Donald Trump’s account on the social media network in January 2021, are reportedly among the departing staff. Although it might only be a temporary post, Musk will take over as CEO, according to a source who talked with Bloomberg.
As per the reports, his next step would be to reinstate Twitter users who have received lifetime bans from the platform, including Trump.
Before finalizing the acquisition, Musk indicated that securing the “future of civilization” was his main driving force in buying Twitter.
Instead of dividing into “far right-wing and far left-wing echo chambers,” Musk says the objective is to maintain a “common digital town square,” where individuals of diverse viewpoints may discuss on their points of view without resorting to violence.
Other objectives include combating Twitter spam bots, which might be done by putting blockchain-based solutions in place.
Bot spam is particularly common in the cryptocurrency world, where con artists frequently use false identities to entice investors by impersonating influencers and other well-known people, including Elon Musk.
Binance Founder Expressed His Excitement about Working Together with Musk
Binance revealed on Friday that it has invested in Twitter’s acquisition by billionaire internet entrepreneur Elon Musk as an equity investor (TWTR).
The founder of Binance, Changpeng Zhao, expressed his excitement in an email, “We’re thrilled to be able to support Elon in realizing a new vision for Twitter. We want to help social media and Web3 work together to increase the use and adoption of blockchain and cryptocurrency.” A team from Binance is reportedly being formed to think of ways that blockchain technology and cryptocurrencies can help Twitter.
In a tweet, Zhao claimed that Binance had sent $500 million as part of the transaction two days prior. CoinDesk’s request for comment from Twitter did not immediately receive a response.
A few Twitter executives were reportedly taken to the door as Musk closed the transaction on Oct. 27. The new owner of the social media platform then purportedly cleaned house. In May 2022, according to a statement made by Binance, it will invest alongside 18 other investors in Twitter, including major cryptocurrency investment firms Sequoia Capital Fund, Fidelity Management, and Research Company.
The founder of Binance said on October 28 that the company had placed money on the table as Musk completed his acquisition of Twitter. To check that the business had wired the monies earlier in the week, CZ used the newly acquired platform.
Zhao clarified that he was not personally involved in the transaction and quipped that he thought the transfer had been made using traditional banking methods rather than a blockchain or cryptocurrency transaction in response to a user on the Twitter thread who wrote “CZ” now owns part of Twitter: “We are small potatoes, just a tiny bit.” Zhao responded to other comments, clarifying that he was not personally involved in the transaction.