Binance Backs Musk's $44 Billion Twitter Bid, Crypto Prices Plunge

Luxury brands embrace crypto

High-end designer brand Gucci has announced that it will accept cryptocurrency payments in five of its U.S. stores by the end of May.¹ While this payment mechanism is only available in select stores, Gucci plans to expand the service to all of its North American stores in the future.

Gucci will accept 12 cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), Shiba Inu (SHIB), Wrapped Bitcoin (wBTC), and five U.S. dollar-pegged stablecoins.¹

Equinox, an upscale health and fitness club based in New York City, will also accept crypto payments for its gym memberships through a partnership with BitPay. NYC-based Equinox members can tap into crypto coins that BitPay supports – Bitcoin, Bitcoin Cash, Ether, Wrapped Bitcoin, Litecoin, Dogecoin, Shiba Inu, or one of five stablecoins.²

Binance and Sequoia Capital back Elon Musk’s Twitter bid

According to a Schedule 13D filing³ with the SEC, Binance and Sequoia Capital have both committed $500M and $800M respectively to help finance Elon Musk's $44 billion Twitter acquisition.⁴ In total, Twitter has received $7.139 billion worth of financing commitments from 18 co-investors.⁵

Binance CEO and Founder Changpeng Zhao referred to the investment as “a small contribution to the cause” in a Tweet⁶ and told CNBC, “We’re excited to be able to help Elon realize a new vision for Twitter. We hope to be able to play a role in bringing social media and Web3 together and broadening the use and adoption of crypto and blockchain technology.”⁷

Bitcoin drops below $36,000

Following a sell-off in U.S. equities, Bitcoin (BTC) dropped below $36,000 on Friday, May 6, 2022.⁸ Within a 24-hour time span, positions on over 2,000 BTC worth $72.7 million were liquidated, followed by Ethereum (ETH) at $39.53 million.⁸ The crypto market slump is in line with a broader downward trend across financial markets, as most major US stock indexes are down.⁹

SEC plans to add staff to ramp up anti-crypto scam efforts

The SEC plans to hire another 20 enforcement staff for its unit that protects investors from crypto scams and cyberthreats.¹⁰ With this addition, the number of staff dedicated to securities law violations in coin offerings, lending, NFTs, and DeFi amounts to 50. To date, their investigations have revealed more than 80 violations of fraudulent and unregistered offerings, with monetary relief amounting to over $2 billion.¹⁰

California governor signs executive order on crypto, blockchain, and web3

California is the first state in the nation to begin creating a “comprehensive and harmonized framework for responsible web3 technology to thrive,” according to an executive order issued by Gov. Gavin Newsom.

The newly signed executive order aims to establish regulatory clarity for crypto assets while accelerating responsible innovation and protecting consumers.

Under the executive order, California officials are responsible for soliciting feedback from the public, as well as “a broad range of stakeholders” in the crypto industry. Lawmakers are also set to explore ways to use blockchain technologies for public and policy needs.¹¹

Sources

1. Gucci the latest luxury brand to accept crypto payments in store. CoinTelegraph
2. Luxury fitness club Equinox starts accepting crypto payments in New York City. The Block
3. Amendment No. 6 to  Schedule 13D. United States Securities and Exchange Commission.
4. Binance, Sequoia Among Investors Backing Musk's Takeover of Twitter. CoinDesk.
5. Twitter Receives $7.2B in Equity Commitments from Binance and 17 Other Investors. CoinCentral.
6. CZ_Binance Tweet
7. Binance is backing Elon Musk’s Twitter bid, boosting crypto believers’ vision of a ‘decentralized’ web. CNBC.
8. Crypto Market Sees $400M In Liquidations In 24 Hours As Bitcoin Dips Below $36,000. Benzinga.
9. 9. Bitcoin's price tumbles as much as 7% during financial markets tumult. The Block.
10. SEC to Add Staff as It Ramps Up Anti-Crypto Scam Efforts. CoinDesk.
11. Governor Newsom Signs Blockchain Executive Order to Spur Responsible Web3 Innovation, Grow Jobs, and Protect Consumers. CA.Gov.

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