By Laura Sanchez
Investing.com - Binance has reportedly backed Elon Musk's purchase of Twitter (NYSE:TWTR), and is doing so with a €500m investment, the cryptocurrency exchange said.
"We are excited to be able to help Elon realise a new vision for Twitter," said Changpeng Zhao, CEO of Binance, in a statement.
"We hope to play a role in bringing social networks and Web3 together and in expanding the use and adoption of cryptographic and blockchain technology," Zhao added.
Binance's aim with its participation in Elon Musk's $44 billion acquisition of Twitter could thus boost the hopes of digital currency 'evangelists' for the development of a more "decentralised" and crypto-friendly social networking platform.
Binance's founder is a firm believer in the crypto world's vision of a new kind of internet, known as Web3. It's a poorly defined term, but Web3 as a concept refers to new web experiences built around blockchain, the technology that underpins many cryptocurrencies.
Such services could incorporate digital tokens such as non-fungible tokens or NFTs; the cryptographic equivalent of collectible items such as rare art or stickers, in areas such as social networking, web browsers, or video games.
Binance's investment is part of a $7bn funding pledge to back the Tesla CEO's bid to buy Twitter. Oracle co-founder Larry Ellison and venture capital firm Sequoia are among other investors.
Binance is the world's largest cryptocurrency exchange site, with 1.2 million transactions per second.