Why Binance Invested in Twitter at This Time?

Twitter acquisition by Elon Musk has attracted mixed responses from the crypto community across the globe, igniting arguments over the potential changes that can occur in the operations of the social media forum in the coming time. These modifications include account verification, censorship, as well as the introduction of the latest blockchain and crypto-focused features.

Changpeng Zhao Explains Why He Made Investment in Twitter after Musk’s Entrance

Nonetheless, Changpeng Zhao (the CEO of Binance) invested nearly $500M in Twitter, taking the social media giant to the limelight. Admitting the rumors, Zhao pointed out six things that compelled him to offer support to Twitter and the possible results thereof. The prominent reason for his investment was that he believes in free speech. He stated that freedom of speech counts as a requirement to have freedom of earning money which is offered by Binance. This is a common ground between his and Musk’s platforms.

The 2nd reason for the respective investment deals with the support that Binance provides to entrepreneurs. Elon Musk, in his words, is an active entrepreneur and Zhao considers Twitter will keep on growing swiftly under his rule. The 3rd reason mentioned by Zhao for the funds’ injection was huge untapped value as he is of the view that exclusive business models could be delivered by the social media venue without requiring to sell the user data.

After that, Binance CEO pointed toward Twitter’s Web3 integration to be a driving force for his investment in the platform. The 5th reason given by Zhao appeared to be personal. Furthermore, he asserted that Twitter’s platform has been significant for him to maintain open interaction with the world of cryptocurrency, taking into account journalists, investors, entrepreneurs, and the common masses.

Binance CEO Supports the Changes Despite Community’s Concerns

He additionally disclosed having an approach analogous to Musk, in terms of making innovative modifications to the platform, as the 6th reason for his investment in Twitter. According to Zhao, these changes denote the inclusion of a button for edit, recompensing fees to have blue ticks, and making payments for writing comments in response to the posts.

A prominent change among the others is the elimination of bots. Apart from that, Zhao has improvised his views on CBDCs. He has recently expressed his opinion that CBDCs do not hinder the crypto ecosystem.