Billionaire entrepreneur Elon Musk made an announcement that excited investors about the biggest meme coin Dogecoin (DOGE). As expected, Musk’s announcement fueled a nearly 20 percent price increase in DOGE. However, DOGE could not sustain the price increase. Here are the details…
Elon Musk’s new plans for Twitter raise Dogecoin price
Elon Musk has confirmed that he plans to integrate payments into what he describes as Twitter 2.0 – “The Everything App.” The new Twitter CEO revealed his plans in a tweet to his 119.2 million followers on November 27. He also shared a few slides from a recent “Twitter company talk.” Musk doesn’t seem to mention DOGE in the tweet or the attached slides. However, that doesn’t seem to stop some investors from being hopeful that Dogecoin will somehow get involved.
https://twitter.com/GailAlfarATX/status/1596982447878832128
According to the data, the price of Dogecoin (DOGE) rose 19.4 percent from $0.089 to $0.107 a few hours after the tweet. However, it is currently down to $0.096. Other plans listed as part of Musk’s Twitter 2.0 vision include “Advertising as Entertainment”, “Video”, “Encrypted DMs”, “Long-form tweets” and “Relaunch Blue Verified”.
All time record broken
Data from the slides suggests that Musk’s takeover is already making an impact. He states that the social media platform has reached all-time highs in terms of “new user sign-ups” and “the amount of minutes users stay active.” It reveals that in 2021 it increased by 86 percent and 30 percent from its amount in the same time frame.
Does the integration of DOGE as a payment method make sense?
In October, popular tech blogger Jane Manchun Wong revealed in a tweet on October 27 that the company has started working on a wallet prototype that supports cryptocurrency deposits and withdrawals. This led to a 40 percent price increase in DOGE. Then, rumors about Twitter’s crypto wallet plans surfaced. Lior Yaffe, co-founder of Swiss-based blockchain software company Jelurida, made a statement on the subject. Recently, Musk said that even if he integrates Dogecoin into Twitter, it would not be a wise decision. He used the following expressions:
Even if they manage to build a payment system around Twitter, there are far better Blockchain solutions than Dogecoin in terms of security, privacy, smart contracts and scaling.
Daniel Elsawey, CEO and co-founder of decentralized exchange (DEX) TideFi, also said that while integration is possible, its use on Twitter will be strictly limited to payments. He used the following expressions:
Given that DOGE cannot directly interact with smart contracts as part of its original design, I would say the associated use cases will remain speculative unless specifically used as a payment option.
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