Binance is the largest crypto exchange in the world, which processes billions of dollars in trading volume on a daily basis.

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The move by Bitcoin exchange Binance to take part in Elon Musk’s $ 44 billion takeover of Twitter could boost digital currency evangelicals’ hopes of developing a more decentralized, cryptocurrency-friendly social media platform.

Binance plans to invest $ 500 million in equity funding as part of a pledge of $ 7 billion in support of Tesla’s CEO’s offer to buy Twitter. Oracle co-founder Larry Ellison and venture capital firm Sequoia are among the other investors involved.

Binance’s involvement is curious, not least because of the business it operates. The company is the world’s largest cryptocurrency exchange, processing more than $ 70 billion in spot and derivatives daily, according to CoinGecko.

Changpen Zhao, CEO and founder of Binance Billionaire, is a big believer in the crypto world’s vision for a new type of Internet known as Web3. This is a poorly defined term, but Web3 as a concept is free to refer to new web experiences built around blockchain, the technology that underpins many cryptocurrencies.

Such services may include digital tokens such as irreplaceable tokens or NFT – the crypto equivalent of collectibles such as rare works of art or commercial cards – in areas such as social media, web browsers or video games.

Binance’s Twitter share could be Zhao’s chance to realize the decentralized ideals of Web3.

“We are excited to be able to help Elon realize a new vision for Twitter,” Zhao told CNBC on Thursday. “We hope to be able to play a role in unifying social media and Web3 and expanding the use and adoption of crypto and blockchain technology.

Musk, a self-proclaimed “absolutist of free speech,” often complains about what he sees as censorship of Twitter by conservative voices on the platform.

Bitcoin and other digital currencies are not controlled by any entity, a setting that supporters say makes them “censorship-resistant.”

Prior to stepping down as CEO, Twitter co-founder Jack Dorsey helped create an initiative aimed at creating decentralized social media protocols. Called Bluesky, the project was created in part to tackle the problem of a handful of powerful technology companies controlling the most popular online services.

Although backed by Twitter, Bluesky says it is an “independent company”. Dorsey, who publicly backed Musk’s offer and is a vocal supporter of bitcoin, remains on the Blues board.

“Basically, I don’t believe anyone should own or manage Twitter,” Dorsey said in a recent tweet. “He wants to be a public good at the protocol level, not a company.

Crypto Twitter

However, Musk may need a little persuasion. Previously, the richest man in the world doubted whether Web3 was a “marketing buzzword” rather than a reality.

His commitment to easing policies about what Twitter users can post has raised fears that he could open the platform to potentially toxic or illegal content. For his part, Musk says he only wants to allow “lawful” speech.

“I am against censorship that goes far beyond the law,” he tweeted last week.

Ryan Wyatt, head of games and metaverses at the blockchain group Polygon, said balancing freedom of expression with maintaining a safe online environment was “much easier said than done.”

“It’s very easy to point out and say it shouldn’t be included, it shouldn’t be included,” Wyatt, who previously ran YouTube’s games, told CNBC. “But if I asked 100 different people, you would get 100 different answers.”

“How do you make these decisions in a way that may contradict your personal values, but also maintain freedom of speech – these are very difficult, complicated conversations and I do not envy the richest man in the world who is trying to take down that. “

https://www.cnbc.com/2022/05/05/binance-backing-for-elon-musks-twitter-bid-boosts-web3-vision.html