Changpeng "CZ" Zhao, CEO of Binance, gave an explanation of the $500 million co-investment into Elon Musk's Twitter, citing the possibility for monetization, the freedom of speech in the cryptocurrency ecosystem, and the chance to "help push Twitter into Web3" in the future.
In a CNBC Squawk Box segment on October 31, CZ made the following remarks about the motivations behind his joint investment with Elon Musk to purchase the social media platform:
I believe Twitter has not been monetized well, it has not grown well, there's many tactical problems like bots that spam my comments, there's scammer accounts on there, it's not been run well.
Since it initially made its support known in May 2022, Binance has remained steadfast in its stance in favor of Musk's purchase of Twitter. Sequoia Capital Fund, Fidelity Management, and Research Company are a few additional co-investors.
The CEO of Binance stated that despite giving cryptocurrency a "place at the table" when it comes to free speech, Twitter's challenging price valuation had no bearing on the company's investment decision.
The cryptocurrency exchange intends to establish a special team to work on future blockchain- and cryptocurrency-based Twitter solutions, according to a Reuters article from October 28.
The new team will investigate how to create on-chain remedies for problems like spam bot accounts.
