Crypto

Binance backs $500 million Twitter takeover of Elon Musk

According to a filing with the U.S. Securities and Exchange Commission, Elon Musk has brought together a group of investors, including Saudi Prince Larry Ellison and cryptocurrency exchange Binance, to raise more than $7 billion to support his participation in Twitter Inc.’s takeover bid. .

total 18 participants

It’s not entirely true to say that billionaire Elon Musk bought Twitter for $44 billion. In fact, Tesla’s eccentric CEO received little backing from 18 co-investors. Among them, one of the most famous is the Binance Changpeng “CZ” Zhao cryptocurrency exchange.

On April 25, cryptocurrency exchange Binance invested $500 million in Elon Musk’s acquisition of Twitter. Shortly after the news broke, Binance CEO Changpeng Zhao tweeted that it was only a “small contribution to the cause.”

According to US Securities and Exchange Commission (SEC) filings, Binance participated along with 17 other investors. We also found that investment funds familiar with the cryptocurrency ecosystem, including Sequoia, participated up to $800 million, Fidelity up to $316 million, and even a16z (Andreessen Horowitz) up to $400 million.

After initially buying a 9.2% stake in Twitter in early April 2022, billionaire engineer Elon Musk made a splash when he spent $44 billion to buy the social network’s entire stake from Bluebird.

Tesla’s CEO said that after buying Twitter, he will turn the platform into a place of completely free expression, attack the bots that abound on the network, and expose the algorithms used by the famous social network. More than 320 million people use Twitter worldwide.

Binance will help fight bots and scammers

So we can see that the Binance cryptocurrency exchange provided very important ways to help Elon Musk with the acquisition of Twitter, although Binance co-founder and CEO Changpeng Zhao tweeted that he made a “little contribution to the cause”, so the cryptocurrency exchange just staked 500 million dollars in the social network.

However, Elon Musk’s largest co-investor will remain the Lawrence J. Ellison Revocable Trust. In fact, the Oracle Foundation and Larry Ellison, founder of the database management program of the same name, will provide $1 billion to acquire Twitter.

After this news, the BNB token price rose by $10 from $400 to $410 before falling to its current level of $404. However, Dogecoin (DOGE), billionaire Elon Musk’s favorite memcoin, was unaffected by the news.

It is hoped that Binance’s help to Elon Musk will further accelerate Twitter’s adoption of bitcoin (BTC) and cryptocurrencies. Changpeng Zhao and his cryptocurrency exchange are well aware of all the problems with Twitter scam attempts using spam bots to scam cryptocurrency enthusiasts. Because, as AMF unfortunately reported in a recent report, 25% of scammers in France are now using cryptocurrencies to scam their victims.

Perhaps Dogecoin (DOGE) can help fight these spambots. As soon as the quirky Elon Musk donated $44 billion on Twitter, the community behind Dogecoin was ecstatic. The latter undoubtedly believes that the billionaire, big fan of memcoin and smiling Shiba dog, will find a use for DOGE on Twitter. Mark Cuban also came up with this idea of ​​using.

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