The blue bird is gone. Instead, we have X now, the everything app. Twitter's rebranding has already caused fluctuations in the crypto market. Dogecoin gained its two-month high because of rumours about integrating the cryptocurrency into the X payment system. Let's dig deeper into what happened to Twitter, what X is and how it can influence the crypto market.
X is Twitter 2.0 version with a new name, logo and vision. The platform aims to be more than just a microblogging social media, but the app to conduct the entire financial world. Additionally, it wants "to be the best place on the internet to earn a living as a creator". So that the platform will share its revenue with creators whose content helped to generate income, making Twitter a part of the fair creative economy, which is usually the goal of Web3 apps.
Besides the visual side and naming, the rebranding plan includes advertising as entertainment, video, encrypted DMs, long-form tweets, and payments.
The payment system will initially be built to accept fiat currencies with the idea in mind to operate with cryptocurrencies in the future. There was gossip that Elon Musk was about to launch an X native token, and many scam projects have appeared, claiming their connection with Twitter. However, the CEO of the platform has refuted rumours and stated that Twitter has no plans to launch a native token.
Although having a native token and not relying on current solutions may be appealing, issuing new tokens under USA jurisdiction is not straightforward. The issue may appear with determining the type of a digital asset, whether it is a security or not, and with the current crypto-negative sentiment of the US government. So Twitter is more likely to implement existing cryptocurrencies into the payment system and bear zero execution risks.
Although it has been said that cryptocurrency payments will be a possibility in the future, support for crypto payments has actually been available since April 2022. Stripe company, Twitter's payment processor, introduced crypto payouts for Twitter creators in April 2022. So everything is ready to start accepting cryptocurrencies on Twitter 2.0.
What cryptocurrencies will the payment system support? Many crypto investors believe that Dogecoin, Musk's favourite cryptocurrency, will undoubtedly be the chosen currency. But there are also votes for Bitcoin, despite Musk having made numerous negative comments and actions on BTC dropping its price.
Dogecoin is the first-ever meme coin that appeared against Bitcoin as a joke. However, the joke took a while, and DOGE is ranked #7 by market capitalization and is one of the most chosen cryptocurrencies for investing.
Elon Musk exposed negative sentiment towards Bitcoin. However, he often joked around Dogecoin, making its price spike after his tweets. The last "joke" was when Twitter's blue bird logo was replaced with Dogecoin's, causing its growth by 30%. The next time he placed Ð, a Dogecoin symbol, in his Twitter bio, giving hope to DOGE investors and affecting the price again.
Since the rebranding, Dogecoin's price has been in green, showing a 13.73% rise within a month. During July, its market sentiment was greedy and gained 62 on the Crypto Fear and Greed Index scale. Now the sentiment rolled back to the neutral position.
The crypto market is anticipating more concrete information on Twitter 2.0 payments. If Dogecoin becomes its means of payment, it will gain utility. Meme coins have no specific utility except for their use in transactions, which contributes to their high volatility. The utility aims to provide more stable prices. Also, the integration will contribute to DOGE adoption and may cause its volume and market dominance growth.
Crypto payments on Twitter will positively affect the crypto market, whatever currency will become a means of payment there. The increasing adoption of cryptocurrencies is a positive indication for the market that may lead crypto users to greedy sentiment, resulting in increasing demand and prices. However, let's stay cool-headed. Elon Musk trolls a lot on Twitter, and his actions often contradict his statements. Like it was with his negative comments on AI when ChatGPT spiked, and now he has launched an AI startup.
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