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Binance CEO Changpeng Zhao reveals that Twitter monetization, free speech and Web3 integration swayed his decision to invest in the microblogging platform.
Following Elon Musk’s acquisition of Twitter, crypto entrepreneur Changpeng’ CZ’ Zhao explains the incentive for Binance’s investment in the deal. According to the CEO, Binance injected $500 million into the Twitter deal as a co-investor due to the platform’s appealing monetization potential. In addition, Zhao cited the crypto community free speech and the opportunity to onboard Twitter into Web3 as additional incentives for investing. In his own words:
“There are many reasons for supporting the deal. Twitter is a free speech platform, which is global, which is extremely important. We want to support strong entrepreneurs. Elon Musk is a very strong entrepreneur. We want to make sure that crypto has a seat at the table when it comes to free speech. And there are more tactical things like we want to help bring Twitter into Web3 when they’re ready.”
Further expounding on the perceived poor management and monetization policies regarding Twitter, the Binance CEO also explained:
“I believe Twitter has not been monetized well, it has not grown well, there’s many tactical problems like bots that spam my comments, there’s scammer accounts on there, it’s not been run well.”
According to Zhao, Binance is a long-term investor in Musk and Twitter’s agenda. Thus, the exchange views any potential rewards as a co-investor from a “10, 20, 50, 100-year basis”. With this in mind, Zhao also stated that any slight monthly price fluctuations sustained in that period would not unnerve Binance.
Binance Monetization Plans Include Web3 Integration
Binance plans to assist Twitter with Web3 integration by implementing crypto payments and stopping spam bot accounts. One way Binance plans to do this is to enable Twitter membership payments through digital currencies. Meanwhile, to address the issue of fake automated accounts, the leading exchange will reportedly deploy a dedicated team of on-chain specialists.
Musk has also begun to reshape Twitter in the image he believes would bring about optimum results for the company. For instance, the brash businessman dissolved the company’s board of directors, fired CEO Parag Agrawal, and is also focused on a new payment scheme. According to reports, Musk has also tasked Twitter staff to work relentlessly toward rolling out a new pricing model for Twitter Blue subscription. There are already various pricing approaches on the table alongside a list of possible payment options.
Musk explained that a new content moderation council will look into the reinstatement of banned accounts. This specialized panel is responsible for determining which banned accounts to restore or reactivate presumably based on careful deliberations and analysis.
Twitter Future Bright Under Musk, CZ Suggests
Since pledging support for Musk’s Twitter acquisition back in May, Binance has not wavered. With Musk at the helm, Zhao believes that the Tesla CEO’s wealth of experience in handling pressure would serve Twitter well. Binance’s $500 million investment in the microblogging platform makes it the fourth-largest shareholder amongst 19 investors. Other co-investors include Sequoia Capital Fund, Fidelity Management and Research Company.