Twitter’s Free Speech and monetization drove Binance to invest $500M
Binance reportedly will also help in Twitter’s Web3 by doing crypto payments and hiring a dedicated team of on-chain specialists for blocking bots and spam accounts.
Changpeng “CZ” Zhao COE of Binance says the reason behind the $500 million co-investment with Musk’s Twitter, citing monetization importance, and giving the crypto community free speech and the opportunity to bring Twitter into Web3.
On 31 Oct. on the CNBC Squawk Box segment, CZ’s told what caught his attention to co-invest with Musk to secure the social media platform
“I believe Twitter has not been monetized well, it has not grown well, there are many tactical problems like bots that spam my comments, there are scammer accounts on there, it’s not been run well.”
He adds, “But I think the platform has huge value in itself, and especially now with Elon at the helm, we’re very confident.”
Binance has not snapped with Musk taking over Twitter since the news break In May 2022. Other co-investors include Sequoia Capital Fund, Fidelity Management, and Research Company.
CZ also said Twitter’s price value didn’t impact its investors as it gives a long-run prospect while giving in a say when it comes to free speech.
“We’re long-term investors, we believe in strong entrepreneurs, we believe in strong platforms, we believe in free speech we look at this from a 10, 20, 50, 100-year basis, so a little price fluctuation on a monthly basis doesn’t bother us.”
The decision on which accounts should be re-activated won’t be decided by Musk as a specialized team of content moderation council has been hired and this decision will be taken by them.
“We want to help solve those immediate problems like charging for memberships that can be done very easily by using cryptocurrencies as a means of payment.”
In a report in Reuters on Oct 28, the crypto decided on building up a team of specialists who will work potentially on crypto and blockchain-based solutions for Twitter. Binance’s $500 million investment ranks as the fourth largest investment in all of the 19 investors of Twitter.