Binance, the world's largest cryptocurrency exchange by trading volume, said it invested $500 million as part of $500 million in Elon Musk's $44 billion deal to buy Twitter (TWTR), a small but significant move that fueled speculation the social media company could eventually be powered by blockchain technology
"We wired the $500 million 2 days ago, probably just as I was being asked about Elon/Twitter,'' tweeted Binance CEO Changpeng Zhao, known as CZ. Binance is already said to be forming a team to brainstorm ways blockchain and crypto can benefit Twitter.
- Crypto exchange Binance has invested $500 million in Musk's Twitter takeover.
- With Binance as an investor, speculation about Twitter running on blockchain technology has arisen.
- For Binance, the deal would bridge social media and news into Web3.
Will Twitter Run on Blockchain?
Musk, who has said Twitter needs to be more decentralized and tweeted "the bird is freed" upon his deal's completion, has long toyed with the concept of linking blockchain to social media.
"The idea of blockchain free speech has been around for a long time," Musk wrote in a text message in March to former Twitter CEO Jack Dorsey. "The questions are really about how to implement it."
Binance's Backing For Musk's Twitter
Binance first revealed plans to support Musk's acquisition in May. CZ said at the time that it would be a "small contribution to the cause," saying the deal would bridge social media and news into Web3.
The company's contribution is tiny compared with investments from Morgan Stanley, Bank of America, and Barclays, each of which committed to at least $2.5 billion in debt financing for the deal. Other investors include Sequoia Capital, Qatar Investment Authority, and Fidelity Management & Research.
The Bottom Line
For Binance CEO CZ, the investment is an opportunity to implement Web3. Earlier this year, he made it clear that the exchange's support is conditional, and that he would only support the deal if it was implemented. "If he's [Musk] off, we're off," he said in an interview. Considering the drama tied to Twitter's takeover, it won't be surprising if there are more in the months ahead.