​Why MASK token soar and what does Elon Musk’s purchase of Twitter have to do with it

In the first days of November, the MASK token became extremely popular in the crypto community, which became part of the new index of the Binance exchange. The coin, which is not included in the first hundred cryptocurrencies in terms of market capitalization, soared in price several times at the time of the completion of Elon Musk’s purchase of the social network Twitter, and its ticker by a lucky coincidence was in tune with his last name.

The Binance Bluebird Index was launched on November 3. It will track three cryptocurrencies: BNB (the exchange’s native token), Dogecoin, and Mask Network (MASK). The presence of the first two looks logical, especially given the news that Binance invested $500 million in Musk’s purchase of Twitter. However, the inclusion of MASK, an unknown token with a capitalization of $127 million, in the index looked unusual.

According to the press release, the new index is calculated using a formula involving “the weighted averages of the constituent tokens’ real-time prices on the Binance Spot.” The rate of the MASK token rose by 86%after the announcement. On the same day, token trading was launched by the FTX exchange.

The name of the index (“bluebird”) and its constituent tokens created a resonance in social networks. There were rumors that all three coins might somehow be integrated into Twitter. Later, in a series of tweets, Binance CEO Changpeng Zhao listed several reasons why his company invested in the deal. One of them was to “help with Web3 integration” as “the largest provider of liquidity.”

4, we are happy to help with Web3 integration, if needed. Everyone needs liquidity. We are the largest provider of liquidity. — CZ 🔶 Binance (@cz_binance) November 4, 2022

The protocol of Mask Network runs on Ethereum, BNB Chain, and Polygon blockchains and serves as a bridge for decentralized applications (dApps) that can be interacted with via a browser extension without leaving the Twitter or Facebook interface.

“MASK is Musk”

At the moment, it is unclear how the tokens that make up the Bluebird index will be used on Twitter under Musk’s leadership, and whether they will be used at all. Representatives of Binance tell reporters in comments that the index is not related to the exchange’s investments in buying the social network.

At the same time, Elon Musk repeatedly announced the integration of cryptocurrency payments into Twitter. The experts interviewed by GetBlock Magazine also agree that we should expect Dogecoin or other cryptocurrencies to be included in future upgrades to the platform. Numerous discussions about the launch of the index suggested that it is the three constituent tokens will be chosen as the means of payment.

The price of the MASK token began to rise as soon as the deal to buy Twitter was confirmed. The cryptocurrency’s rate rose by more than 300%. Back on October 27, the coin was trading at $1,36, and the very next day it reached a local high of $5,66. As of November 7, the MASK token is worth $4,45, according to CoinMarketCap.

The soaring price and subsequent volatility attracted many traders. Twitter ironized that the token was only being bought because of the name, as another “meme coin” out of the hundreds of those born of any possible association with Elon Musk or Dogecoin. The meme “MASK is Musk” appeared, which accompanied many publications about cryptocurrency deals.

TradFi investors: "I will buy Apple stocks because I believe in its long-term value and brand."Crypto traders: pic.twitter.com/ysnuY2NpC8 — Tree of Alpha (@Tree_of_Alpha) October 29, 2022

Will MASK be on Twitter

Speaking to Decrypt reporters, Mask Network founder Suji Yan avoided a direct answer, saying that, in his opinion, “Elon can choose any token. A free speech platform should allow any token.” He added that his project was not involved in the creation of the Bluebird index, and he has no control over the new financial instrument from Binance in any way, citing that the exchange had invested in MASK long before its involvement in Twitter’s purchase.

The MASK token was launched in February 2021 via what is known as ITO (Initial Twitter Offering), one of the options for selling tokens when one can participate in a project launch, airdrop, or run a Gitcoin grant campaign directly on a Twitter account.

Technically, the protocol of the Mask network may well be suitable for integration into the social network interface, if Twitter does connect cryptocurrency payments or other blockchain solutions. Its capabilities also include displaying non-fungible tokens (NFTs) as avatars, as well as participation in trading on marketplaces, among them OpenSea or Rarible. So far, none of the possible scenarios has been confirmed.