6 Reasons Binance Backed Elon Musk’s Twitter Buyout

Binance notoriously devoted $500 million to support Elon Musk’s buyout of Twitter, after the billionaire announced his offer in April. 

The company’s CEO, Changpeng Zhao (CZ), has now provided a summary of its 6 primary reasons for doing so. 

Binance Supports Free Speech

According to a Twitter thread from CZ on Friday, Binance’s foremost reason for supporting the buyout is its support for freedom of speech. 

“Twitter is the global Townsquare. From singers/athletes/movie stars to politicians/CEOs/entrepreneurs, the crypto community, and us little guys, Twitter gives us our voice,” he said. “This alone is enough for us to invest …”

Elon Musk has promised to make Twitter a free speech haven since electing to buy the company. He’s already stated that he’s against permanent user bans, hinting that previously axed users like Donald Trump could be allowed to return. 

CZ emphasized that Binance is invested in the cause, rather than the money, since free speech is a “pre-requisite” for crypto’s free money promise.

Changpeng Zhao (CZ): Source: CNN

CZ also said Binance supports entrepreneurs – such as Elon Musk. The new Twitter CEO is also the head of Tesla and SpaceX, and the wealthiest man on the planet.

Only a week at the helm, Musk has already fired all of Twitter’s executives and former directors. He’s still amid large-scale layoffs across the entire company.

Untapped Value

When Musk made his first $44 billion offer in an SEC filing in April, he said Twitter had “tremendous potential,” and that he would “unlock it.” CZ agrees with this, stating that Twitter “has not had a proper business model yet.”

Musk has already established plans to require a subscription to Twitter Blue for $8 per month to stay verified on the platform.

Next, CZ said Binance could be a reliable provider of liquidity in case Twitter wants to integrate with the Web3 ecosystem. The CEO also heavily uses Twitter himself and believes in the idea of investing in the platforms one personally uses. 

Finally. Binance plans to help Twitter address key issues – including ridding the platform of its bots. Spam bots are especially common in Twitter’s crypto community, where countless scams are promoted by bots posing as influencers every day. Musk’s new subscription verification plans are one step intended to solve this problem. 

“Lastly, don’t ask me about a plan,” concluded CZ. “ Never had a plan for Binance. Entrepreneurs don’t plan. We execute and adjust.”

Last year, CZ and Musk had a heated Twitter spat after Binance struggled to process Dogecoin withdrawals for about a month. 

Stay up to date with our latest articles

Andrew Throuvalas

Source link