Binance, the world’s largest cryptocurrency exchange by client count and liquidity, has contributed funds to fast-track Elon Musk’s Twitter takeover, details from the recent U.S. SEC filings on May 5 show.
Binance contributes $500 Million in Cash to Aid Elon Musk’s Twitter Takeover Bid
According to data, Binance funneled $500 million in cash as Elon revealed that he had received up to $7 billion from high-profile supporters supporting his bid. Some of them include Sequoia Capital—known for their serial investment in cryptocurrency firms, Fidelity—whose Digital Assets wing, Fidelity Investment are avid supporters of the crypto ecosystems, Brookfield, and Qatar’s Sovereign Investment Fund.
The participation from Binance is notable and points to their ambition of pushing beyond the crypto space to invest in the traditional and highly regulated traditional investment sphere. However, it could also reveal Elon Musk’s grand plans of promoting privacy, boosting freedom of speech and expression, and possibly decentralizing Twitter in the long haul.
Changpeng Zhao, the CEO of Twitter, is a big believer in web3 and blockchain ideals of power diffusion, community-building, and end-user empowerment. His contribution to aid Elon’s takeover bid would indirectly help realize his vision. In an interview following the revelation of the exchange’s $500 million cash contribution, Zhao said he was “excited” and glad to be part of the team that brings social media and blockchain together.
We’re excited to be able to help Elon realize a new vision for Twitter. We hope to be able to play a role in bringing social media and Web3 together and broadening the use and adoption of crypto and blockchain technology.
Will Elon Musk Open-Source Twitter’s Algorithms?
Although complete decentralization of Twitter involves open-sourcing algorithms that make the social media platform tick, it is improbable that Elon Musk and supporters proceed despite the billionaire Chairman of Tesla agitating for free speech.
Still, this may not prevent Twitter from launching in a decentralized and, most importantly, scalable blockchain network that can handle the social media platform’s processing demands while keeping its source code closed.
Presently, Ethereum, the smart contracting platform, could be a deploying option considering its first-mover advantage. However, scaling issues leading to high Gas fees immediately eliminate the protocol from contending with other emerging scaling-focused platforms like Avalanche or Solana.
- nft blockmagnates: Photo by Tezos on Unsplash