Elon Musk’s statements and moves, be it a nod of approval or an act of defiance, are sure to cause a buzz among his cheerleaders and critics. Being a visionary in the field of technology and finance, it’s no secret that the influential figure is a big advocate of cryptocurrency adoption with a particularly soft spot for Dogecoin (DOGE). Therefore, he is always closely watched by speculators as his pronouncements have, more often than not, had a profound effect on the trajectory of the dog-themed meme coin.
As we reported previously, Musk’s X (formerly Twitter) social media empire just launched a channel for X Payments. As of this writing at 6:00 AM UTC, the account is yet to make its first post but it has already gained 105.6K followers.
According to entrepreneur and industry watcher Mario Nawfal, this coincided with the company’s earlier acquisition of licenses to operate as a money transmitter in the US and a partnership with eToro for future collaboration in its stock and crypto trading integration. There are also suggestions that it may partner up with PayPal.
Of course, nothing is set in stone as of the moment as we await official announcements from the X channel. Although it’s still shrouded in mystery, some can already sense where it may go should its first-ever post be related to crypto — or mention DOGE even in passing.
Spike in Value and Popularity of DOGE
DOGE surged over 14% following the discovery of X Payments as it created a buzz online. The hype also raised the social dominance of the crypto to its highest level so far this year. FXS noted that the extent of social media hype for Dogecoin went up from 1.14% on January 1 to as high as 3.45% on Saturday in the wake of the payment platform’s soft launch. However, the digital asset is showing retracement to $0.084 currently as the anticipation cooled down and some people have shifted to a “wait and see” mode.
So, how would the first post of the platform sway the trajectory of the OG meme coin should it announce crypto integration?
If X Payments shows support for DOGE or starts using it for payments, this could legitimize Dogecoin and expand its use cases. The ensuing growth in adoption could drive more demand, hence, pushing up its price.
Furthermore, Musk’s team-up with eToro and PayPal as well as getting the green light from regulators to operate X Payments in the US aligns the supported cryptos with legitimate and established institutions. This would bring in more confidence to their actual utility while clearing up the FUD concerning their regulatory compliance.
In a nutshell, any news about Dogecoin following government rules, project launches, or new developments in this area can affect its value. Good news on this front can make DOGE seem more reliable, possibly increasing its price, while bad news or its exclusion from the new venture of the “Dogefather” could do the opposite.