Binance, the world’s largest crypto exchange that invested $500 million in Elon Musk’s acquisition of Twitter, is creating a team to work on how blockchain and crypto can benefit Twitter, the company’s spokesperson said. As one of Elon Musk’s shareholders to fund his $44 billion (nearly Rs. 3,62,300 crore) deal, Binance said it will consider plans and strategies that could help Elon Musk manage the platform.
The newly formed team will explore how to create on-chain solutions to Twitter’s problems, including the proliferation of bot accounts, a problem Musk has repeatedly complained about and nearly rejected his proposal.
The saga of Musk’s takeover of Twitter came to an end on Thursday when the deal was officially reached after months of twists and turns in and out of the courtroom and Musk promptly fired the social media platform’s top managing directors.
Twitter began exploring ways to incorporate blockchain technology under co-founder and former CEO Jack Dorsey, who was a proponent of Bitcoin.
In November 2021, Twitter launched an internal crypto team to build features involving such technologies. The company introduced the ability to pay Twitter followers to use non-fungible tokens (NFT) as their avatar photo.
In text messages with confidants that were released as part of the Twitter litigation, Musk discussed the possibility of putting Twitter on the blockchain, though he later appeared to decide that such a move wouldn’t work.
It’s unclear to what extent co-investors like Binance can actively participate in Twitter’s future as a minority investor, as Musk fully controls the board and decision-making at the now-private Twitter. Most of his co-investors are funds such as Sequoia Capital, Fidelity Management, Andreessen Horowitz and Brookfield. Binance CEO Changpeng Zhao, known as CZ, is an active Twitter user with over 7 million followers on the platform.
© Thomson Reuters 2022
Affiliate links may be automatically generated – see our ethics statement for details.