Binance, the world’s biggest crypto exchange that has invested up to $500 million into Elon Musk’s buyout of Twitter Inc, is now setting up a team to work on how blockchain and cryptocurrency could be helpful to Twitter, the firm’s spokesperson stated on October 28.
Being one of Elon Musk’s equity co-investors to fund his $44 billion deal, Binance stated that it will brainstorm various plans and strategies that might enable Elon Musk to run the social media platform smoothly.
The newly-formed team is set to explore how to develop on-chain solutions to address Twitter’s issues including the proliferation of bot accounts, a challenge Musk has often complained about and nearly reneged his offer on.
Musk’s Twitter takeover saga ended on October 27 when the deal officially closed after several months of twists and turns in and outside the courtroom, and Elon Musk quickly fired top executives at the social media platform.
Twitter has started exploring means of integrating blockchain technology under co-founder and former CEO Jack Dorsey, who has been a vocal proponent of Bitcoin.
In November 2021, Twitter unleashed an internal crypto team to develop features that consist of such technologies. The firm introduced the ability for paid Twitter subscribers to use various nonfungible tokens (NFTs) as their avatar photos.
Buy Bitcoin NowIn text messages with confidants that were published as part of the litigation with Twitter, Musk discussed the possibility of placing the social media platform on the blockchain. However, he later seems to decide that such a move would never work.
It is still unclear how actively involved co-investors like Binance might be in Twitter’s future as a minority investor, since Musk wholly controls the board and decision-making in the now-private Twitter. A majority of his co-investors are funds like Fidelity Management, Sequoia Capital, Brookfield, and Andreessen Horowitz.
Binance’s Chief Executive Officer Changpeng Zhao, commonly known as CZ, is an active Twitter user with more than 7 million followers on the platform.
