The Tesla boss has big plans for the social network. And Binance’s financial support is not insignificant.
October 28, 2022, the announcement was made. After seven months of twists and turns, Elon Musk takes control of Twitter. Very quickly, the boss of SpaceX wants to mark his first days at the head of the social network with a series of steps and announcements. The arrival of Elon Musk marks a new era for Twitter, especially on Web3.
Jack Dorsey, founder and former CEO of Twitter, is already a strong supporter of Bitcoin. Therefore, the social network is considered open about crypto and blockchain. Dorsey is a true bitcoin maximalist and he eventually quit his job to carry out his plans. However, Twitter has never lost its pro-crypto side and Elon Musk’s belief will reinforce that sentiment.
At the time of the formalization of the acquisition, one announcement also caused a lot of talk: the involvement of Binance. Changpeng Zhao, boss of the crypto exchange platform, has actually confirmed financial support of up to 500 million dollars. A significant involvement, to officially help Twitter successfully migrate to Web3. This is also a great opportunity for Binance.
Musk, Twitter and Web3, a long story
He wanted it, he finally got it after long months of negotiations. Since last May, Elon Musk’s takeover of Twitter has sparked bitter discussions and various controversies. The billionaire wants to restore freedom of expression, which he considers incomplete on Twitter, especially since the suspension of Donald Trump’s account. On his first day, he fired most of Twitter’s board, including the former CEO.
Elon Musk also announced the creation of a package to verify his account at 8 dollars per month. This proposal, already debated, is a first response to the proliferation of fake accounts that Musk denounced from his desire to take over. But the Tesla boss also wants to turn to Web3, and not just a little.
A few hours before the acquisition, the social network coordinate in its next step in the democratization of non-fungible tokens (NFTs). In effect, Twitter will be a pre-marketplace outlet for NFTs. Artists or sellers will be able to list their NFT on the social network and interested people will be automatically redirected to an exchange platform dedicated to NFTs.
In the United States, Twitter users can now put their NFT as a profile picture, with a mention of ownership of said NFT. Still across the Atlantic, cryptocurrencies can be used as tips paid to certain users. There is no doubt that these advancements should be expanded to the rest of the world. Elon Musk must go further, without knowing what steps he will take.
What is certain is that the new boss is in line with Jack Dorsey, who wants to make his Twitter the most open social network in Web3 (or rather in Bitcoin). The most advanced proposal is the integration of an in-house crypto wallet that can be activated directly on Twitter. Given Elon Musk’s passion for Dogecoin (DOGE), there are also rumors that the dog-headed crypto could play an important role in Twitter in the future. For example, can certification be paid for at $8 per month at DOGE? With the future integration of a wallet, this is a possibility that will prove true in the coming months.
But Elon Musk isn’t necessarily the person who will actually bring Twitter into the Web3 world. In fact, as we have seen, a surprise investor slipped into the acquisition of the social network: Binance.
The news was not made official until the day of the public announcement of the Twitter acquisition. The world’s largest exchange, Binance, participated for $500 million. Changpeng Zhao, boss of Binance, confirmed this himself… on Twitter!
Looking at Twitter’s Web3 ambitions, Binance’s involvement isn’t a surprise. In fact, the platform has everything to help bring the social network to the Internet of the future. Officially, Binance wants to help Twitter embrace blockchain and crypto technology. It’s pretty vague!
Patrick Hillman, Chief Strategy Officer at Binance, provided some background. The first goal is to try, a lot. In fact, Hillman evokes the desire to turn Twitter into a kind of sandbox to solve some of the problems inherent in Twitter. In other words, the goal is to use Web3 technology to solve Web2 problems.
The first of these issues is the most important to Elon Musk: fake accounts or bots. By using blockchain technology to verify the authenticity of an account, Twitter will be one of the first giants to use a form of decentralized identity that remains to be defined. Neither Musk nor Binance specified how blockchain would be used to combat fake accounts, but both are committed to ending this scourge.
A logical continuation for Binance
The arrival of Binance, directly or indirectly, in the capital of Twitter is the confirmation of the immense ambition of Changpeng Zhao. We have also devoted an article here. The exchange platform does not want to be a major player in Web3, because it already is. He sees more.
Binance is getting registrations in many countries, not just France. It is notably heavily involved in the Gulf countries (Bahrain, United Arab Emirates). Binance wants to be a crypto-bank and a bridge between traditional finance and cryptocurrency. If the platform has many competitors, it is the most advanced in the subject, which makes the most significant investment and that is the most in demand.
By acquiring a stake in Twitter, Binance is now involved for the first time with a large purely Web2 company, to make its transition to Web3 a success. This is also a desire that is clearly not in the philosophy of the decentralized Internet, because Twitter will remain under the control of one person or one entity.
Until now, Zhao’s bets have always been good. So there is no reason for Binance to stop on a good path.