Changpeng Zhao explains why Binance gave $500 million for Twitter acquisition

Why did Binance, the world’s largest cryptocurrency exchange, put up $500 million for Elon Musk’s purchase of Twitter? Changpeng Zhao, founder and CEO of the exchange platform, answered on Monday, Oct. 31.

Interviewed by CNBC’s Squak Box, Zhao gave at least. three reasons for his company’s support of Musk’s Twitter crusade. First, he said it was a way of contribute to freedom of expression globally. For him, this is precisely what social networking is all about. “It is an extremely important aspect,” he stressed.

On the other hand, he said, because Binance likes to support “great entrepreneurs.” Elon Musk, who heads companies like Tesla or SpaceX, is just such a great entrepreneur in the eyes of Binance’s boss.

Finally, the head of the largest stock exchange on the planet referred to Twitter’s potential to become a “super app,” something Musk himself had previously commented on. For Zhao, Twitter can be likened to WeChat, a Chinese platform that brings together a group of people to social network, shopping platform, and payment medium.

Binance’s position in support of the entrepreneur dates back to last May, when the Tesla founder’s intention was first made known. In fact, he has already the figure Of $500 million.

“We want to help bring Twitter to Web3 and solve problems like subscription pricing. Something that could be done very easily globally using cryptocurrencies as a means of payment.”

Changpeng Zhao, CEO of Binance.

As we reported in CryptoNews last week, Elon Musk has finalized the purchase of Twitter that he had announced last May. In addition to support from Binance, this news item also refers to other developments in the cryptocurrency world.

Given Musk’s continued support for the cryptocurrency meme Dogecoin (DOGE), this has doubled in price in the past 7 days, thanks to Twitter’s purchase. In addition, since there is speculation that Musk may add to DOGE. as a platform currency. It remains to be seen how Binance’s involvement will affect this or other possible integrations in the cryptocurrency world.