Twitter Launches Crypto Team
VYSYN Ventures Weekly Insights #74 - Twitter is the latest in a line of enterprises exploring crypto tokens for business purposes
Cryptocurrency adoption in the mainstream is gaining momentum by the day. The latest enterprise to consider it is the social media giant, Twitter. On Wednesday, November 10th, 2021, the platform officially launched a crypto team. According to Twitter, the goal of this team is to become “a center of excellence for all things blockchain and web3.”
In the latest VYSYN Release, we analyze Twitter’s venture into the blockchain and cryptocurrency industry. We also highlight recent major events surrounding blockchain and cryptocurrencies that show increased adoption by the mainstream.
Crypto, not just Blockchain, team founded at Twitter
Twitter’s interest in all things blockchain and cryptocurrencies does not come as a surprise. A couple months back, the company’s CEO Jack Dorsey sold the first ever tweet on the platform as an NFT. During the same period, he updated his profile with the single word “Bitcoin”, leaving it there for a considerable period. This was perhaps an early hint of what was to come.
Content monetisation is one of the earliest projects that the new Crypto team is expected to tackle. Crypto payments in the form of Bitcoin tips and payments for ticketed spaces are some of the use cases expected to go live. NFT implementation processes and decentralized social media functions are some of the more interesting projects the company has announced. As such the move doesn’t seem entirely linked to the pressure Dorsey has been facing recently from his board.
Leading the Twitter crypto team is Tess Rinearson, a senior engineer at the company. In a series of tweets, Rinearson explained that Twitter wants to “help push the boundaries of what’s possible with identity, community, ownership and more.”
This move by Twitter could kick off a domino effect that will see enterprises operating independently on blockchain networks, rather than relying on centralized networks like the Amazon Web Services (AWS). In the long run, the long-anticipated control of data and privacy by users could also become a reality. Twitter’s move is a landmark event both in the life of blockchain technology and social networks.
This latest step reflects a growing trend of open declaration of support and approval by individuals and establishments towards blockchain technology and cryptocurrencies. Some of which include the recent approval of a Bitcoin Futures ETF approval by the SEC, and Apple CEO, Tim Cook’s public declaration of his interest in cryptocurrencies.
Apple cryptocurrency adoption on the cards?
Cook admitted he owns some cryptocurrencies and also stated that he has been interested in the technology “for a while”. He clarified that his interest in cryptocurrencies is strictly from a personal perspective, and has nothing to do with Apple.
As of the time of writing, Apple has no cryptocurrency products or services, even though plans of having one in the future have not been completely ruled out. Cook admitted that Apple was already looking into cryptocurrencies. However, he also clarified that it is not something that they plan to implement immediately.
For now, crypto wallet apps can be downloaded from Apple’s iPhone App Store, while mining apps are prohibited. Cook also rejected the possibility of Apple buying cryptocurrency with corporate funds as an investment, choosing to not gamble in the market the way Tesla recently did. Cook’s admission to owning cryptocurrencies is coming at a time when the market is exhibiting extremely bullish momentum.
Crypto tokens adopted in high finance
In December 2020, banking giant JP Morgan implemented blockchain technology to execute a repo transaction. It was conducted between the bank’s broker-dealer and banking entity in an instantaneous transaction that was settled in hours, as opposed to the days it would have taken via traditional systems.
Ever since, the bank has continued to use blockchain technology, fueled by its native JPM token to execute transactions. JP Morgan’s success in facilitating this transaction did not go unnoticed, as Goldman Sachs immediately showed interest in the JPM token.
The benefits of blockchain technology makes it extremely attractive to major establishments, and it is only a matter of time before we see widespread implementation. The technology enables the facilitation of shorter-term intraday repo transactions with real-time, simultaneous transaction settlement, creating new ways to access intraday liquidity. If crypto tokens can wow the traditionally staid halls of big finance, how long will it be before they become everyday tokens of exchange?
Cryptocurrency adoption is increasing
The balance of events and regulatory approaches across the world reveal a greater level of acceptance for cryptocurrencies. With such developments, it becomes normal, if not expected to see more industry leaders make public their interest and support for Bitcoin and cryptocurrencies. Even those who may not have been involved before now could begin to show interest, and possibly participate in the expanding market.
Cook and Twitter’s declaration of interest and ownership of cryptocurrencies is a welcome development among crypto users and other practitioners in the industry. With increasingly bullish momentum and growing innovation around the industry, increased adoption is expected. It will not come as a surprise if more declarations are announced as the days and weeks go by.
About VYSYN Ventures
VYSYN Ventures is a longstanding venture capital company that specializes in funding and supporting disruptive startups in the blockchain and cryptocurrency industry. We have provided early-stage support to several projects that have grown to USD market capitalizations of hundreds of millions and even billions. Our incubation program focuses on providing capital allocations, versatile marketing support, and tech assistance.