The acquisition of Twitter by billionaire Elon Musk received combined reactions from crypto and international communities, sparking discussions round adjustments to censorship, account verification and the launch of recent crypto and blockchain-centric options. Nonetheless, Binance CEO Changpeng “CZ” Zhao’s resolution to take a position $500 million within the social media web site took the limelight.
Acknowledging the thrill, CZ shared six the explanation why he opted to help Twitter and what it could imply for the way forward for Twitter.
Ever since Twitter’s new sink was in, I used to be requested about it in each interview. And I had many interviews final week. So, here’s a abstract.
Why did we do it? 6 causes.
— CZ Binance (@cz_binance) November 4, 2022
CZ’s major cause for investing in Twitter was his perception in free speech. “Free speech is a prerequisite for having freedom of cash, which we’re constructing for,” mentioned CZ whereas highlighting the significance of Twitter in offering a standard platform the place most people and distinguished figures can voice their opinions.
The second cause for the fund injection is said to Binance’s help for entrepreneurs. In CZ’s phrases, “With Elon on the helm, we consider Twitter will proceed to develop and change into an impactful platform for everybody.”
CZ listed “large untapped worth” because the third cause for the funding, as he believed that the social media platform may ship progressive enterprise fashions with out the necessity for promoting consumer information. With this potential on the backdrop, CZ supplied to assist with Web3 integration for Twitter, which was additionally his fourth cause.
The fifth, nonetheless, was a private one for CZ. Twitter has been essential to CZ in sustaining open communication with the crypto area, together with entrepreneurs, buyers, journalists and most people.
CZ additionally revealed having an identical mindset to Musk — the sixth cause — on the subject of making adjustments to Twitter, which incorporates eliminating bots, including an edit button, paying for blue ticks and paying for commenting on posts.
“Entrepreneurs do not plan. We execute and modify,” mentioned CZ as he revealed no etched-in-stone plans for Twitter. Whereas addressing Crypto Twitter, Binance CEO careworn that Twitter was a long-term funding and isn’t bothered by short-term inventory worth fluctuations and market situations.
In response to CZ, central financial institution digital currencies (CBDCs) usually are not a risk to the crypto ecosystem.
Quite the opposite, he mentioned mainstreaming CBDCs would validate and enhance belief in blockchain expertise. Final yr, CZ refuted the thought of CBDCs, stating that they’d not have the ability to match the liberty supplied by Bitcoin (BTC) and Ether (ETH).