After the announcement of Binance’s $500 million investment in the purchase of Twitter by Elon Musk, Chang Peng Zhao, CEO of this exchange, announced his main goals for participating in this big purchase in an interview.
To Report Kevin Telegraph, Zhao made these comments on CNBC’s Squawk Box on October 31. The CEO of Binance explained what inspired him to co-invest with Elon Musk to buy the social networking platform.
I believe twitter doesn’t have a good monetization method and it hasn’t grown well, there are a lot of technical problems like bots spamming my comments, scam accounts [زیادی] It’s there, and it’s not handled skillfully.
But I imagine the platform itself has a lot of value, especially now that Elon [ماسک] At the head of it is us [نسبت به آینده] We are very relieved.
Binance has not hesitated in its support since it first announced its support for Elon Musk’s purchase of Twitter in May 2022. Sequoia investment fund and Fidelity management and research company are other joint investors of Binance.
The CEO of Binance has said that the difficult evaluation of Twitter’s price did not affect his decision to invest in the purchase of this social network; Because they had evaluated the long-term perspective of this action as positive, and with this action of theirs, when it comes to freedom of speech, digital currencies will also be part of the decision-making process.
Zhao said about this:
We are long-term investors, we believe in strong entrepreneurs, we believe in impactful platforms, we believe in freedom of expression… we look at this as a 10, 20, 50 and 100 year trend, so small monthly price swings will not worry us. .
Of course, it’s not up to Elon Musk to decide which Twitter accounts will be reactivated. He said that a “Content Balancing Council” will be responsible for reviewing the request to restore closed user accounts.
However, the billionaire entrepreneur confirmed in a tweet that the council will consider a wide variety of views in making its decisions.
Zhao says he invested in buying Twitter because he hopes to play a role in Twitter’s eventual transition to Web3, such as adding cryptocurrency payments to the social network.
CEO of Binance says:
We want to help solve tricky problems like charging for membership, which can be easily done using cryptocurrencies as a means of payment.
Cryptocurrency exchange Binance plans to create a dedicated team that will work on potential cryptocurrency and blockchain-based solutions for Twitter, according to a Reuters report published on October 28.
This new team will explore how to create blockchain solutions to address problems such as spam bots.
Binance’s $500 million investment in Twitter has made the company the fourth largest shareholder among 19 investors in this social network.
Also, Twitter is no longer a public company, as its shares were delisted from the New York Stock Exchange after Musk decided to take the company private on October 28.