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Elon Musk, the famous pro-crypto billionaire, plans to acquire Twitter in a $44B deal. According to the newest SEC filings, Binance ($500M) and a16z ($400M) are among the investors that will back Musk’s Twitter takeover.
Binance is the largest crypto exchange globally, accounting for over 50% of the total crypto trading volume, and is also an active investor in other crypto projects. a16z is a VC focused on blockchain/crypto and has successfully invested in many well-known crypto companies and protocols such as Coinbase, dydx, and Avalanche.
To many, blockchain and crypto have become so common. But the fact is web3 adoption is still pretty low. Given that users need wallets to interact with web3 apps, unique addresses can be seen as the number of users. According to data from Glassnode, the number of active ETH addresses is only around 500K, and the number of non-zero balance accounts is 80M, meaning very few users are actually using web3 apps. Just think about the number of active users on Facebook and YouTube.
The current main barriers to crypto’s mainstream adoption are the complexity of using blockchain/web3 apps and security concerns around self-custody. After acquiring Twitter, Musk will likely add more crypto and web3 features to the social media platform. It can potentially form partnerships with Binance and the crypto companies invested by a16z to build the web3 ecosystem together. Some of these features will likely help simplify the process for average users to start using crypto and web3 apps.
The move is mutually beneficial for Twitter investors and Musk. Web3 Internet companies are slowing down significantly (just look at the recent earnings from NFLX, FB, HOOD, etc.!), and investors are desperately looking for new business models that can justify higher valuations. Adding more web3 and crypto features should help Twitter achieve a much better valuation when it goes public again in a few years, and this is why I believe Twitter will go all in this path.
In summary, I am optimistic about the Twitter takeover and its impacts on the overall crypto/blockchain/web3 industries. Let’s see how this will play out in the coming years.
Elon Musk, the famous pro-crypto billionaire, plans to acquire Twitter in a $44B deal. According to the newest SEC filings, Binance ($500M) and a16z ($400M) are among the investors that will back Musk’s Twitter takeover.
Binance is the largest crypto exchange globally, accounting for over 50% of the total crypto trading volume, and is also an active investor in other crypto projects. a16z is a VC focused on blockchain/crypto and has successfully invested in many well-known crypto companies and protocols such as Coinbase, dydx, and Avalanche.
To many, blockchain and crypto have become so common. But the fact is web3 adoption is still pretty low. Given that users need wallets to interact with web3 apps, unique addresses can be seen as the number of users. According to data from Glassnode, the number of active ETH addresses is only around 500K, and the number of non-zero balance accounts is 80M, meaning very few users are actually using web3 apps. Just think about the number of active users on Facebook and YouTube.
The current main barriers to crypto’s mainstream adoption are the complexity of using blockchain/web3 apps and security concerns around self-custody. After acquiring Twitter, Musk will likely add more crypto and web3 features to the social media platform. It can potentially form partnerships with Binance and the crypto companies invested by a16z to build the web3 ecosystem together. Some of these features will likely help simplify the process for average users to start using crypto and web3 apps.
The move is mutually beneficial for Twitter investors and Musk. Web3 Internet companies are slowing down significantly (just look at the recent earnings from NFLX, FB, HOOD, etc.!), and investors are desperately looking for new business models that can justify higher valuations. Adding more web3 and crypto features should help Twitter achieve a much better valuation when it goes public again in a few years, and this is why I believe Twitter will go all in this path.
In summary, I am optimistic about the Twitter takeover and its impacts on the overall crypto/blockchain/web3 industries. Let’s see how this will play out in the coming years.
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