In the world of social media, there are two primary types of platforms: those that are based on Web2 technology, and those that are based on Web3 technology. While there are many components that make up these two different types of social media platforms, the key distinction is that Web 3.0 platforms are decentralized while Web 2.0 platforms are centralized.

Web 3.0 is the next generation of the internet, where data is stored not on central servers but on decentralized networks.

Social media platforms are fighting for position in the new Web 3.0 landscape. On the forefront of this competition is Meta (formerly Facebook) which invests billions of USD every month to create a Metaverse. And then there’s Twitter, which under the leadership of Elon Musk tries to implement Web3 features into their ecosystem.

So, who will win the race to be the leading Web3 social media platform?

1) Twitter’s Web3 approach

Twitter is home of the largest crypto community. Many call this community “Crypto Twitter aka CT”

With Elon Musk’s Tweet on October 28th this year “The bird is freed”, he officially completed the deal to acquire Twitter. This has led to many discussions about how Twitter from now will embrace Web3 and whether they aim become rivals with Meta in becoming the leading Web3 social media platform.

To answer these questions, it’s particularly important to analyze which partnerships Twitter is entering into.

1.1) Twitter’s Web3 Partnerships

Binance invested $500 million into Twitter when Elon Musk acquired it

Binance CEO Changpeng Zhao (CZ) contributed $500 million to Elon Musk’s Twitter acquisition. He is a vocal supporter of Elon Musk’s Twitter takeover and officially expressed his effort to help Twitter to become the leading Web3 social media platform.

In an CNBC interview, CZ recently said:

“We want to make sure that crypto has a seat at the table when it comes to free speech. There’re also more tactical things, like we want to help bring Twitter into Web3”

CZ also said he’s ready to help Twitter combat spam bots and make payments easier with the help of crypto

Moreover, Elon Musk has had interesting discussion with the creator of Dogecoin Billy Markus about crypto integration and Web3. With Elon’s strong liking for the Dogecoin meme, many speculate that Dogecoin might become the cryptocurrency of the Twitter ecosystem.

1.2) Twitter’s Web3 ambitions

Twitter has one big advantage over Meta when it comes to Web3 adoption: the platform is home to a strong Web3 community (CT). Most founders of crypto projects are active on Twitter which led Twitter to become the hub for blockchain development discussions.

When asked what’s the vision for Twitter, Elon Musk recently said that he wants to turn into an “Everything App” — a platform similar to WeChat in China which is capable of offering users essential services all in one place (Banking, ordering food, calling a ride, content creation, etc.).

He also aims to bring “half of the world’s population” to the platform.

2) Meta’s Web3 Approach

Here is a picture how Zuckerberg’s Metaverse currently looks like — after spending tens of billions of $ on it

On October 28th last year, Facebook CEO Mark Zuckerberg introduced Meta. With a 1-hour long presentational video, he showed his ambition for the Metaverse. So far, his vision hasn’t played out as he initially had expected…

2.1) Meta’s Web3 Partnerships

Meta has partnered with Oasis Labs to facilitate AI Computing Applications

In May this year, Meta announced that they would use the Polygon blockchain to expand their reach into the Web3 sphere. The Polygon blockchain will likely power Instagram NFTs.

Furthermore, Meta had announced a partnership with Oasis Protocol to facilitate AI Computing Applications. Oasis has positioned itself as a leading solution for the data economy which could benefit Meta’s infrastructure greatly.

Meta is targeting many other strategic partnerships with crypto projects it believes can be beneficial in its approach towards becoming the biggest Metaverse.

2.2) Meta’s Web3 ambitions

Since the announcement of creating a Metaverse, Meta has spent insane sums of money on this project, estimating more than $100 billion on R&D alone.

After Meta’s quarterly earnings were published on October 27th, the stock price slumped by as much as -25% with investors calling for Zuckerberg to abandon his Metaverse ambitions. Many analysts call Zuckerberg’s Metaverse world a pure gamble which is not paying off.

Despite showing signs of user growth slowdown + the so-far failed Metaverse ambition, Meta’s social media networks are still massive with more than 2 billion daily active users on Facebook and 1.2 billion monthly active users on Instagram. This fact should always be considered!

3) Own thoughts

I consider this fierce competition around Web3 social media to be extremely bullish for the entire crypto sector. Adoption is progressing faster than ever before. With the already massive crypto community on their platform, Twitter is currently having a competitive advantage over Meta.

Binance’s support for Twitter is also a bullish indicator, since Binance is by far the biggest and most stable crpytocurrency exchange.

For Meta it’s crucial to regain public/investor trust. Otherwise, there is the risk of investor capitulation which forces Zuckerberg to abandon his Metaverse ambitions.