Binance has joined 17 other investors to finance Elon Musk’s planned takeover of Twitter. The crypto exchange has pledged $500M to the effort.

Why should we care?
At first glance, Binance’s investment looks like an attempt to integrate Web3 technologies into Twitter’s infrastructure. The company says as much. “We believe that Web3 may have an equally important role in the future of social media platforms, including Twitter,” a Binance spokesperson said. “Web3’s focus on decentralization could help facilitate greater transparency, accountability, and freedom of expression for all users.” Binance may want to become part of Musk’s envisioned overhaul of Twitter’s payments infrastructure, letting creators be paid in crypto tokens for tweets or NFTs or newsletters. But Binance’s investment also seems hype-related. Musk’s tweets about specific coins have historically held massive sway in crypto markets, contributing to the rise of Dogecoin, for example. Under Musk’s tutelage, Twitter can become a more effective feeder toward Binance’s exchange-based products. This does raise flags, though, entering insider trading-esque territory. With its existing investment in Forbes, Binance seems poised to create an entire media ecosystem (or echo chamber) aligning with its financial goals.