‘Very Hard to Predict’—Binance CEO Reveals ‘90%’ Failure Rate Fears After $500M Elon Musk Twitter Bet Amid Bitcoin, Ethereum and Crypto Price Crash
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The price of bitcoin has climbed above $20,000 per bitcoin since late October, boosting the price of ethereum and other major cryptocurrencies (including Elon Musk’s “favorite,” which has nearly doubled) — despite Coinbase’s CEO admitting that he “overestimated” bitcoin’s potential this year.
Now, as Musk experiments with different ideas for Twitter, the billionaire CEO of bitcoin and crypto exchange Binance, Changpeng “CZ” Zhao, has said he expects 90% of new Twitter features to fail after investing $500 million in Musk’s acquisition.
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Binance CEO Changpeng “CZ” Zhao bet $500 million on Elon Musk’s Twitter bid even in the middle of a … [+]
“I would actually say probably most [the new Twitter features] won’t stick,” CZ said on stage at the Web Summit technology conference in Lisbon, Portugal, it was first reported by Insider. “[But] that’s how you figure out the rest of the 10% of features that will stick … by defining lots of new features.”
The biggest change Musk has announced since the company went private is that Twitter will soon begin charging users who want their account “verified,” a proposal Musk said is “necessary to defeat” bots and fraud on the platform.
Some have suggested that users should be able to pay with the meme-based cryptocurrency dogecoin, with Musk’s car company Tesla and rocket company SpaceX also accepting dogecoin for some purchases.
Dogecoin price has soared higher in the past week, doubling in price as traders bet that Musk’s public support for dogecoin will help its tongue-in-cheek bitcoin rival.
“I think the most bullish outcome for dogecoin may be that Twitter never actually integrates it into the platform,” Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, wrote in an email.
“If Elon Musk continues to tease the crypto community for years, people’s imaginations about the potential possibilities will be far greater than the actual reality of dogecoin being integrated.”
CZ, who is “not bothered by short-term” problems at Twitter, said he was “a little surprised” to hear Musk had decided to buy Twitter on the original deal terms after months of legal wrangling.
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Bitcoin price has strengthened over the past month, finding a floor of $20,000 per bitcoin and … [+]
“It’s very hard to predict what Elon will do next,” CZ said. “The deal was on, the deal was off, the deal was on. It’s OK, we’re committed to our support.”
Binance, the world’s largest bitcoin and crypto exchange by trading volume, was among 19 investors who agreed to back Musk when his $44 billion bid for Twitter was first announced in April.
Since then, an almighty bitcoin, ethereum and cryptocurrency crash has wiped $2 trillion from the crypto market’s value and plunged many fast-growing crypto companies into crisis.
