Twitter Deal: Binance Invests $500 Million

CZ noted Binance’s excitement at being able to contribute to Musk’s vision for Twitter.

Cryptocurrency exchange Binance has confirmed paying $500 million as equity even as Elon Musk seals the Twitter deal. Binance CEO Changpeng Zao (CZ) tweeted that Binance made the wire transfer two days ago.

Binance first made the commitment in May after the announcement of the deal. While noting it was a small commitment, CZ noted the equity commitment depended on Elon Musk following through with the deal. “If he’s off, we’re off,” said CZ in a June interview.

While Musk or Twitter have not made any official announcements, Bloomberg reported that the deal was finalized at the Twitter headquarters yesterday. In the wake of the acquisition, Musk also fired CEO Parag Agrawal, along with other top executives in the company.

CZ noted Binance’s excitement at being able to contribute to Musk’s vision for Twitter. He said:

“We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology.”

Completed Twitter Deal Is a Plus for Crypto

Many of those in the crypto ecosystem believe that the acquisition of Twitter by Elon Musk is a good sign for crypto. This is especially true because many crypto brands have taken to Twitter to grow their brands and connect with their communities. Musk’s beliefs about censorship will allow a permissiveness that causes the industry to continue to thrive.

Already, emerging reports suggest that Musk plans to revoke Twitter’s lifelong prohibitions. This will allow people removed from the platform to return should they want to. Also, Musk has noted that he wants to bring free speech back to the app, causing grave concerns that communication on the app will deteriorate.

Regardless, it is not going to be a smooth ride. Elon Musk comes into the helm of affairs when Twitter is struggling. Earlier this week, Twitter reported it is only managing to keep its most active users, responsible for half of the revenue on the platform.

However it goes, the next few months are bound to be an interesting one full of developments for all Twitter stakeholders. “We look forward to exploring opportunities to grow the partnership in the future,” a Binance spokesperson said.

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Babafemi Adebajo

An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.