Market Analysis Report (01 Nov 2022)

Binance CEO Changpeng Zhao (aka ‘CZ’) has explained that the leading cryptocurrency exchange invested $500 million into Elon Musk’s Twitter buyout in a bid to “help bring Twitter into Web3 when they’re ready.”

CZ noted during a conversation with Andrew Ross Sorkin on CNBC’s “Squawk Box,” that the deal with Musk was “put together a few months back.” The CEO added that there are many reasons for Binance to back the deal, including that Twitter is “a free speech platform, which is global, which is extremely important.”

He went on to add that Binance wants to support strong entrepreneurs and that the firm wants to “make sure that crypto has a seat at the table when it comes to free speech.” Solving the immediate problems Twitter faces, including charging for memberships, can be “done very easily globally using cryptocurrencies as a means of payments.”

When asked to go into detail regarding Binance’s reasoning for investing in Twitter, CZ said that whilst Elon Musk was one of the main factors, he believes the platform has huge value but wasn’t “being run well.”