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What does Binance’s investment in Twitter mean for the future of the social network? – Crypto News

  • Binance is considering what role BNB will play in what Chain Twitter may play in the future, a company representative tells Blockworks
  • The exchange can help Twitter unlock the power of crypto payments, says the founder of the Delta Blockchain Fund

Binance is among 18 investors backing Elon Musk’s $44 billion bid to buy Twitter, a move industry participants have described as an attempt to expand the crypto exchange’s revenue streams from trading fees.

In a curious, unexpected move for a crypto company, Binance has pledged a $500 million commitment to the Tesla founder’s anticipated acquisition of the social media platform an SEC disclosure submitted Wednesday.

While social media platforms have been a core feature of Web2, a Binance spokesperson told Blockworks that the company sees “tremendous opportunities” in helping Twitter expand its capabilities.

“We believe that Web3 could play an equally important role in the future of social media platforms, including Twitter,” the spokesperson said. “Web3’s focus on decentralization could help enable greater transparency, accountability and freedom of expression for all users.”

Binance is assembling a team focused on how blockchain and crypto could help Twitter and other social media platforms.

“For example, what role can BNB Chain play in the future of Twitter?” the spokesperson said.

BNBChainwhich the company unveiled in February includes Binance Chain and Binance SmartChain. BNB, formerly called Binance Coin, stands for build and build. The chain aims to build the world’s parallel virtual ecosystem infrastructure.

Industry observers agree

Musk’s offer was unanimously approved by Twitter’s board of directors last month and is expected to close sometime this year, subject to shareholder approval.

Morningstar equities analyst Michael Miller said Binance’s investment reflects the company’s interest, as well as other exchanges in the space, in expanding beyond crypto trading. Coinbase executives, for example, have noted the company’s focus on diversifying its revenue streams in 2022.

“But the focus is still in the larger blockchain-powered Web3 world — where [Binance is] We’re really looking at a lot of these decentralized apps and how they can integrate with and coexist with other platforms — really being in that ecosystem and owning it as it grows,” Miller said.

The $500 million pledge follows that of Binance 200 million dollar investment at media company Forbes. Binance founder Changpeng Zhao said at the time that “media is an essential element to build broad consumer understanding and education.”

Miller also pointed to Binance’s acquisitions of CoinMarketCap and DappReview, announced in 2020 and 2019, respectively.

“These don’t really speak directly to buying and selling bitcoin, but they speak to these kinds of larger ambitions,” he said.

Kavita Gupta, founder of the Delta Blockchain Fund, called Binance’s contribution a smart decision. Twitter co-founder Jack Dorsey has only endorsed bitcoin and limited tipping to just one currency, she said, noting that the company has yet to reach its full potential.

Gupta added she envisions having a wallet on Twitter to manage tokens, trade non-fungible tokens (NFTs) globally, and analyze credible reviews of products and influencers based on activity.

“Telegram, WeChat, and many others have tried to be the primary place for social conversations and payments,” Gupta told Blockworks. “But Twitter shows the greatest potential for being that focal point, especially for the crypto community and exchanges like Binance, who can truly unleash the power of crypto payments and token launches from the heart of the crypto conversation on Twitter.”

Haohan Xu, CEO of digital asset trading network Apifiny, said how Web3 will transform social media, in line with Musk’s purported vision of returning power on Twitter to individuals.

“Cryptocurrencies typically play the role as a medium of exchange or a representation of value in Web3 ecosystems,” Xu said. “As the largest cryptocurrency exchange in the world, Binance naturally wants to participate and speed up this process.”

other investors

Venture capital firm a16z has also pledged $400 million, according to the filing. The investment follows the start of the company a crypto research lab.

The company said in a blog post that one of the most pressing Web3 questions is “how to best build token economies into consumer-facing Web3 applications like games and social networking.”

Ben Horowitz, co-founder of a16z, tweeted that the social network has problems like bots, abuse, and censorship — exacerbated by the company’s reliance on advertising.

“Elon is the only person we know, and perhaps the only person in the world, who has the courage, brilliance, and skills to fix all of this and build the public space we all hoped for and deserved” , he said.

Fidelity Management & Research Company, the investment advisor to the Fidelity funds, has pledged $316 million, according to the filing. Fidelity Investments launched blockchain and Metaverse ETFs earlier this year, created a financial education experience in Decentraland and announced its offer to allow workers to put part of their retirement savings towards bitcoin.

A Fidelity spokesman declined to comment, saying: “We are not discussing specific companies or investment decisions.”
Meanwhile, venture capital firm Sequoia has pledged $800,000, the disclosure said. The company announced in February that it was ready to launch a sub-fund focused on liquid tokens and digital assets.


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The post What does Binance’s investment in Twitter mean for the future of the social network? is not financial advice.


Source: Crypto News Austria

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