Binance’s CZ on Investing in Twitter: "We’re Very Comfortable with Uncertainty"
As the world’s largest cryptocurrency platform, Binance has made significant investments in various projects and companies. One of the most notable examples is their involvement with Elon Musk’s takeover of Twitter. Changpeng ‘CZ’ Zhao, the founder and CEO of Binance, recently spoke at Web Summit in Lisbon about their investment in Twitter and his views on free speech, business development, and long-term potential.
A $500 Million Investment with Uncertainty
When asked about investing $500 million in someone’s vision for a company only to watch that individual almost immediately try to distance himself from it, CZ responded that he wasn’t bothered when Musk tried to torpedo the deal. "When we invest in a deal, we’re very comfortable if the deal goes through. We’re very comfortable if the deal doesn’t go through," he said.
Support for Free Speech
CZ emphasized that Binance wants to be completely supportive of free speech because it’s essential for their great ambition: "to increase the freedom of money." He believes that free speech is inextricably tied to the freedom of money. As a founder who finds himself in the headlines and doesn’t always like what he reads, CZ understands the importance of having a platform where individuals can correct the news.
Twitter as a Business Development Tool
CZ also views Twitter as an essential business development tool. He considers himself an active Twitter user and uses the app more than he uses the Binance app. "I don’t trade. I just store my crypto on Binance, and then I use Twitter," where the "crypto community" lives and "where politicians go." This highlights the potential for Twitter to serve as a platform for businesses to connect with their target audience.
Supporting Elon Musk’s Vision
Naturally, the biggest driver of Binance’s investment in Twitter is Musk himself. CZ said that Binance "loves to support" Musk for his "different ideas." Despite forking over a massive check to Musk, CZ insisted that he doesn’t receive much detail about what’s happening inside Twitter HQ right now.
The Speed of Change
CZ believes that what he appreciates most is that Musk doesn’t deliberate for long. He noted that the speed of change in Twitter has increased significantly since Musk took over. "Last year, I don’t know how many new features (the company rolled out); I didn’t see that many new ones. But I fully expect that with Elon now in charge, the speed of new features rolling out will be much, much faster."
The Potential for Long-Term Growth
As for when Zhao expects a return on his money, he remains optimistic about Twitter’s long-term potential. Despite the uncertainty surrounding the company’s current situation, CZ believes that the platform has the capacity to grow and become an essential part of online communication.
A New Era for Social Media?
Binance’s investment in Twitter highlights the growing importance of social media platforms as a key component of business development and communication. As more companies invest in these platforms, it’s likely that we’ll see significant changes in how businesses interact with their target audience.
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Investing in Twitter: A Step into the Unknown
Binance’s investment in Twitter is a testament to the uncertainty that comes with investing in emerging markets. While there are risks involved, CZ remains optimistic about the long-term potential of the platform. As we move forward, it will be interesting to see how Twitter evolves and whether Binance’s investment pays off.
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