Elon’s acquisition of Twitter has been all over financial news, unless you have been living under a rock, you would have heard of it. However, while the acquisition does not appear to be sitting so well with people within the traditional financial space, who have made a fuss over Twitter’s charging of $8 a month to keep the “verified” status blue ticks, people in the crypto space have been more excited about it, more so after learning that Binance had a part to play in the acquisition by contributing $500 million to it.
Two of the Biggest Influencers of Crypto Working Together
The combination of the two biggest forces in crypto space has got many crypto investors eager with anticipation over what could come next.
Elon has mentioned that he dreams of creating a super-app like wechat where one can do all things on it and the acquisition of Twitter has set the minds of many with wild imagination over what he would do. This anticipation has been reinforced by Binance’s Founder, CZ, who explained in an interview with CNBC that his rationale for investing in Elon’s Twitter takeover was that he hoped to facilitate Twitter’s transition to Web3. This immediately made crypto investors excited.
Elon has had a history of creating payment apps like Paypal and X.com, and crypto experts are already guessing that Elon would turn Twitter into TwitterX to fulfill his dream of building an all-in-one lifestyle and payments app. On the 2 November, Elon also dropped the idea of using Dogecoin as the default payment currency in an internal meeting about his newly reformed Twitter, allowing content creators to charge in Dogecoin and for users to pay in Dogecoin to read an article that is linked to a tweet. The meeting was apparently videoed by someone and posted on Twitter itself, which caused the price of Dogecoin to pump again that day after having climbed more than 100% the week before when the Twitter deal was finalised.
New Twitter Not Likely to Benefit Only Dogecoin
However, it would be unlikely that Dogecoin would eventually be the only payment currency on Twitter, as that could possibly garner backlash from other parts of the crypto community who did not like Dogecoin. As Elon personally holds and is a believer of Bitcoin and Ethereum as well, there is a high chance that other than Dogecoin, that Bitcoin and Ethereum would also be made available for use as payment, especially so when Binance is in the deal. The largest crypto exchange in the world would not likely approve of using only one cryptocurrency as a payment option in a web3 version of Twitter. However, these are just our speculations and we could be wrong.
Binance’s involvement makes the whole thing even more exciting and on a larger scale, especially after he has dropped hints that Twitter would transition into a web3 platform, which means the use of blockchain would be imperative.
Hints of Other Blockchain’s Involvement
Just when the markets were crazy chasing Dogecoin, Binance launched a Bluebird Index on its platform out of the blue also on 2 November, with the name Bluebird clearly referencing Twitter due to its logo with a blue colored bird. The index comprises only three coins related to Twitter - these are, BNB, Dogecoin, and a token named Mask. The timely launch of this index has generated a lot of buzz within the crypto space, with many traders speculating that the Twitter transformation would involve the three coins.
While we have no details as to how these three coins would come together to build a new Twitter, a check on what the Mask token is about shows that Mask Network is a bridge between web2 and web3 for social media accounts. By connecting to your favorite social media account through the Mask network, users will be able to use them normally like any other website or application, but incorporate web3 functionalities into it.
Some web3 functionalities include your ability to encrypt messages to only the people you want to share content with, unlocking encrypted messages, or even launching projects on Twitter which they have aptly named as Initial Twitter Offering (ITO). The Mask website says ITOs can work for projects built on BNB Chain, Ethereum, Polygon and Arbitrum Rollup. From this, we can already gather some hints that the key blockchains involved could be BNB, Ethereum and Polygon, with Mask acting as the connecting bridge between users and the new Twitter. Therefore, it would not be just Dogecoin benefitting from the Twitter transformation.
Should these plans materialise, and we do not see why they would not, apart from objections from regulators. For instance, the US officials are rumoured to be considering a formal investigation into Elon’s purchase of Twitter as details emerge about the information privileges granted to large foreign investors under the terms of the deal. Authorities are also concerned as to the sources of funding that Elon received from investors who supported his deal. These investigations could create some unnecessary trouble with the deal should regulators feel a need to stop the deal from going through. However, it has been a week since Elon took over the reins at Twitter but regulators have not yet given any problem. This could be a positive sign since regulators would have already stepped in if they disapproved of the transaction. Thus, while it is still not an all-clear, the chances of the deal falling apart at this stage is not big.
As the transformation takes shape, users can hope for a true web3 social media platform to emerge in the coming days which will benefit the entire crypto ecosystem since moving to web3 can bring crypto adoption to users on Twitter who have not yet been bitten by the crypto bug. Currently, Twitter has around 300 million users worldwide.