• Binance contributes $500 million dollars to $44 billion plan to take over Twitter
• The exchange was among 18 other co-investors who in total contributed approximately $7.2 billion 
• Binance’s stake in Twitter could be Zhao’s chance to realize Web3 decentralized ideas

Binance, the world’s largest crypto exchange platform, has invested $500m in Twitter’s acquisition by Elon Musk. The exchange was amid 18 equity investors, according to the document filed on Wednesday with the U.S. Securities and Exchange Commission (SEC). 

Binance was the fourth-largest contributor. Its CEO, Changpeng Zhao, tweeted taming the investment as a “small contribution to the cause” through his official Twitter account. 

A small contribution to the cause. https://t.co/xD9XZxOWfL

— CZ 🔶 BNB (@cz_binance) May 5, 2022

Zhao being a believer in Web3, the new internet in the crypto world, could be leveraging Binance’s stake in Twitter so as to realize Web3 decentralized ideals.

“We’re excited to be able to help Elon realize a new vision for Twitter, we hope to be able to play a role in bringing social media and web3 together and broadening the use and adoption of crypto and blockchain technology.” Zhao told CNBC. 

Why Twitter?

After Elon Musk had offered to acquire Twitter in the previous month, Changpeng “CZ” tweeted that Musk should privatize Twitter, issue a token, and decentralize it. Musk opines that the priority would be to reduce scams and spam on the platform. 

The Tesla CEO, Musk, agreed to acquire the platform saying that he aimed to make Twitter a supporter of free speech. Elon Musk is also widely considered a big advocate of cryptocurrencies such as Bitcoin and Dogecoin.

Other firms join Binance in Twitter takeover

On 25th April, Musk announced that he would acquire Twitter with transactions worth $44B. The transaction is expected to close in 2022 only if Twitter stockholders and regulators approve.

Binance was among the 18 co-investors who put in approximately $7.2B. The other investors include Sequoia Capital, Vycapital and Lawrence J. Ellison Revocable Trust, which contributed $800 million, $700 million, and $1 billion, respectively.

Fidelity Management and Research Company was also part of the 18 co-investors. Other supporters included Brookfield and Qatar holding.

Musk plans for Twitter

Elon Musk initially had the idea of turning Twitter’s headquarters into a shelter. This is slowly occurring, especially after Musk tweeted “, “Twitter will always be free for casual users but maybe a slight cost for commercial and government users.”

Just recently, a downvote button was introduced on Twitter for its mobile application. This will help users identify a spam bot and report it.

Given that Musk is acting on the decision to eliminate bots from comments, he might charge commercial and government users.