What does the investment of Binance in Twitter mean for the future of the social network?
What does the investment of Binance in Twitter mean for the future of the social network?
- Binance considered what role BNB plays in the future, a company representative told Blockworks
- The exchange can help to release the power of crypto payments, says the founder of the Delta Blockchain Fund
Binance is one of the 18 investors who support Elon Musk's 44 billion dollar offer to buy Twitter, a step that is called an attempt by industry participants to expand the sources of income of the crypto exchange from trade fees.
In a curious, unexpected step for a crypto company, Binance has a commitment of $ 500 million for the expected takeover of the social media platform by the Tesla founder A SEC-BOOKEN Wednesday submitted.
While social media platforms were a key feature of Web2, a spokesman for Binance told Blockworks, the company sees “enormous opportunities” in helping Twitter to expand its skills.
"We believe that web3 could play an equally important role in the future of social media platforms, including Twitter," said the spokesman. "The focus of web3 on decentralization could help enable more transparency, accountability and freedom of expression for all users."
Binance puts together a team that focuses on how blockchain and crypto could be helpful for Twitter and other social media platforms.
"What role can BNB Chain play in the future of Twitter, for example?" said the spokesman.
Binance smart chart charm . BNB, formerly called Binance Coin, stands for building and building. The chain aims to build the parallel virtual ecosystem infrastructure in the world.
Industry observers agree
The offer of Musk was unanimously approved by the board of Twitter last month and is to be completed at some point this year, subject to the approval of the shareholders.
The stock analyst of Morningstar, Michael Miller, said that Binance's investment reflects the company's interest and other stock exchanges in this area to expand beyond the cryptoandel. Coinbase managers, for example, found the company's focus on the diversification of its sources of income in 2022.
"But the focus is still in the larger blockchain-powered web3 world-where [Binance is] we really look at many of these decentralized apps and how they can be integrated into other platforms and coexist with them-really in this ecosystem and own it while it is growing," said Miller.
The promise of $ 500 million follows that of Binance Investment at the media company Forbes. The founder of Binance, Changpeng Zhao, said at the time that "media are an essential element in order to build up a broad consumer understanding and comprehensive information".
Miller also referred to the takeovers of Coinmarketcap and Dappreview by Binance, which was announced in 2020 and 2019.
"These do not really speak directly for the purchase and sale of Bitcoin, but they speak for this type of larger ambitions," he said.
KAVITA GUPTA, founder of the Delta Blockchain Fund, called Binance a clever decision. Twitter co-founder Jack Dorsey has only supported Bitcoin and limited the tip to just one currency, she said and found that the company had not yet exhausted its full potential.
GUPTA added to have a wallet on Twitter to manage tokens, to act with non -fungible tokens (NFTS) and to analyze credible reviews of products and influencers based on activities.
"Telegram, Wechat and many others have tried to be the primary place for social conversations and payments," Guppa told Blockworks. "But Twitter shows the greatest potential to be this central point, especially for the crypto community and exchanges such as Binance, which can really unleash the power of crypto payments and token starts from the heart of the crypto conversation on Twitter."
Haohan XU, CEO of the digital-asset trade network Apifiny, said how web3 will change social media, in harmony with Musk's alleged vision, which will be distributed to individuals on Twitter.
"Cryptocurrencies usually play the role as a medium of exchange or value presentation in web3 ecosystems," said XU. "As the largest cryptocurrency exchange in the world, Binance naturally wants to take part and accelerate this process."
other investors
The risk capital company A16Z has also promised $ 400 million according to the file. The investment follows the start of the company A crypto research laboratory .
The company said in a blog post that one of the most pressing web3 questions is "how to best incorporate token economies into consumer-oriented web3 applications such as games and social networks".
Ben Horowitz, co -founder of A16Z, tweeted that the social network has problems such as bots, abuse and censorship Dependence of the company is still tightened by advertising.
"Elon is the only person we know, and perhaps the only person in the world who has the courage, brilliance and skills to repair all of this and build the public place we all hoped for and deserves," he said.
Fidelity Management & Research Company, the Fidelity Fund's investment consultant, has promised $ 316 million according to the file. Fidelity Investments has introduced blockchain and meta-verse ETFs this year, created a financial education experience in Decentraland and announced its offer to give workers the opportunity to use part of their pension for Bitcoin.
A fidelity spokesman rejected a statement and said: "We do not discuss certain companies or investment decisions."
Meanwhile, the risk capital company Sequoia has promised $ 800,000, according to disclosure. The company announced in February that it was ready to put on a sub -fund that focuses on liquid brands and digital assets.
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The contribution What does the investment of Binance in Twitter mean for the future of the social network? is not a financial advice.