Will Elon Musk and Binance Bring Twitter to Web3?

Tesla’s boss has big plans for the social network. And the financial support of Binance is not insignificant.

October 28, 2022 the announcement is made. After seven months of twists and turns, Elon Musk took over Twitter. Very quickly, the boss of SpaceX wanted to mark the first days at the head of the social network with a series of measures and announcements. Elon Musk’s arrival marks a new era for Twitter, especially as it turns to Web3.

Jack Dorsey, the founder and former CEO of Twitter, was already a strong supporter of Bitcoin. Therefore, the social network was already considered quite open regarding crypto and blockchain. Dorsey is even a real bitcoin maximalist and he eventually quit his job to realize his plans. However, Twitter has never lost its pro-crypto side, and Elon Musk’s take on it will reinforce that sentiment.

At the time of the formalization of the takeover, an announcement also made a lot of noise: that of Binance’s participation. Changpeng Zhao, the head of the crypto exchange platform, has indeed confirmed financial support of up to $500 million. An important participation, to officially help Twitter to successfully transition to Web3. This is also a great opportunity for Binance.

Musk, Twitter and Web3, a long story

He wanted it, he finally got it after long months of negotiations. Since the year last may, Elon Musk’s takeover of Twitter sparked bitter discussions and various controversies. The billionaire wants to restore freedom of expression, which he considers not absolute on Twitter, especially after the suspension of Donald Trump’s account. On his first day, he fired most of Twitter’s board, including the former CEO.

Elon Musk also announced the creation of a package to certify his account for $ 8 per month. The move, which is already being debated, is a first response to the proliferation of fake accounts that Musk has denounced since his bid to take over. But Tesla’s boss also wants to get back into Web3, and not just a little bit.

A few hours before delivery, the social network communicate in its next step in the democratization of non-fungible tokens (NFTs). Indeed, Twitter will become a pre-market outlet for NFTs. Artists or sellers will be able to list their NFT on the social network and interested parties will automatically be redirected to an exchange platform dedicated to NFTs.

In the United States, Twitter users can now set their NFT as their profile picture, mentioning ownership of said NFT. Still across the Atlantic, cryptocurrencies can be used as paid tips for certain users. There is no doubt that these advances must be extended worldwide. Elon Musk has to go further, without knowing exactly what measures he will take.

It is certain that the new boss is in line with Jack Dorsey, who wanted to make his Twitter the most open social network for Web3 (or better for Bitcoin). The most advanced measure would be the integration of ia crypto wallet home activated directly on Twitter. Given Elon Musk’s passion for Dogecoin (DOGE), There are also rumors that the dog-headed crypto may play a big role on Twitter in the future. For example, can certification be paid for at $8 per month on DOGE? With the upcoming integration of a wallet, this is a possibility that could become real in the coming months.

But Elon Musk isn’t necessarily the person who will really bring Twitter to the Web3 world. Indeed, as we have seen, a surprise investor slipped into the acquisition of the social network: Binance.

The news was not made official until the day of the public announcement of the Twitter acquisition. The world’s largest exchange, Binance, participated to the value of 500 million dollars. It was Changpeng Zhao, the head of Binance, who confirmed it himself… on Twitter!

When looking at Twitter’s Web3 ambitions, Binance’s participation is nothing short of a surprise. Indeed, the platform has everything to help introduce the social network the internet of the future. Officially, Binance wants to help Twitter embrace blockchain technology and crypto. It’s pretty vague!

Patrick Hillman, Chief Strategy Officer at Binance, said gave some information. The first objective will be testing, a lot. Indeed, Hillman evokes the desire to make Twitter a kind of sandbox to solve some of the problems inherent in Twitter. In other words, the goal will be to use Web3 technology to solve purely Web2 problems.

The first of these issues is what is most important to Elon Musk: fake accounts or bots. Using blockchain technology to authenticate an account, Twitter would be one of the first giants to call a kind of decentralized identity that remains to be determined. Neither Musk nor Binance have specified how blockchain will be used to combat fake accounts, but both are committed to ending this scourge.

A logical continuation for Binance

The arrival of Binance, directly or indirectly, in the capital of Twitter is the confirmation of the immense ambition of Changpeng Zhao. We have there devoted to an article. The exchange platform does not want to become a key player in Web3, as it already is. She sees much further.

Binance is taking registrations in many countries, not just in France. It is particularly involved in the Gulf countries (Bahrain, United Arab Emirates). Binance wants to become a crypto-bank and a bridge between traditional finance and cryptocurrency. If the platform has many competitors, it is the one that is the most advanced in this topic, that makes the most significant investments and that is the most in demand.

By taking a stake in Twitter, Binance is now getting involved for the first time with a major purely Web2 company in order to make its transition to Web3 a success. This is also a desire that is clearly not in the philosophy of the decentralized Internet, since Twitter would remain under the control of one person or one entity.

To date, Zhao’s bets have always been good. So there is no reason for Binance to stop on such a good path.

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