Billionaire Elon Musk already announced when he took over the short messaging service Twitter last fall that he wanted to integrate payment systems on the platform in the future. According to Musk’s plan, Twitter’s business model should generate more revenue than advertising sales.
Test run for new payment offers on Twitter
For example, Musk had already started a test run with the blue verification hook. Instead of getting this only through a complicated registration process, users could buy it for a few dollars.
However, the move caused anger among some of the public and among market observers. Because with the verification hook, until now people have been able to prove their identity without any doubt. The blue tick was very important for politicians and celebrities to convey messages on their behalf.
Because many scammers try to pretend on Twitter with fake identities that a certain star or politician has made a statement and they want to attract a lot of attention. There is often an attempt to put them in a bad light or push them into a certain political camp. There are repeated attempts to use fake accounts to lure unsuspecting users to fraudulent websites and thus take money out of their pockets.
Twitter is applying for US state licenses
However, Elon Musk is not worried and has now started applying for regulatory licenses to enter the US payment business. This reports the Financial Times. In November 2022, Twitter was already registered as a payment provider with the US Treasury Department as a first step. The next step is to obtain state licenses to actually implement the payment models. The starting point is the US domestic market.
Meanwhile, Twitter is working internally to create the necessary technical infrastructure for the new payment service. According to a Financial Times report, the job is in the hands of senior Twitter executive Esther Crawford, who serves as the company’s director of product management. It is said that she started with a small team to design the architecture that should be able to process different payment methods on the platform.
BREAKING: Elon Musk submits license applications so Twitter could become a payment processor.
I would love to see PayPal go bankrupt.
— Collin Rugg (@CollinRugg) January 30, 2023
Musk is looking for new revenue streams for Twitter
According to Elon Musk’s vision, Twitter should become a kind of “everything app”. These include various financial services, peer-to-peer transactions, debit cards and savings accounts.
If Musk’s plan works, Twitter could open up new sources of revenue. There will also be some pressure on Musk to succeed. After all, he spent $44 billion on Twitter and, according to media reports, also took out bank loans.
Additionally, due to some unconventional actions and statements by Musk, advertising revenue is said to have dropped significantly recently. They are said to be worth $5 billion a year. It is not known how much of that sum is currently being generated, however. However, it also made headlines that it appears that Musk has not paid rent on Twitter’s company buildings for months.
Musk invests in the crypto industry
The success of Twitter’s new business model cannot yet be judged. However, expectations are high – in the crypto industry as well. As is well known, Musk also loves digital currencies. Through his company Tesla, he once announced the purchase of Bitcoin for $1.5 billion. However, the company has already sold most of them at a loss.
But Musk is considered to be a big fan of the Dogecoin token meme. Even before becoming the head of Twitter, Musk repeatedly published new messages on social networks that expressed his passion for Dogecoin. He also revealed on Twitter that he bought Dogecoin for his son.
— Crypto Daily Trading Signals (@cryptodailyTS) January 27, 2023
The Dogecoin community speculates on payment on Twitter
The Dogecoin community has long speculated that Musk might introduce crypto payments with Dogecoin on Twitter. After all, it was already possible for Musk to pay for Tesla merchandise with DOGE in the past. It was also possible to buy an electric car with Bitcoin in the Tesla store.
The latest news about Twitter’s request for payment licenses gives new impetus to the speculation that DOGE payment methods will soon become an official payment method in the social network. Even if these rumors have not yet been confirmed by Musk himself.
DOGE price is still low despite the uptrend
In response to the news, the price of Dogecoin has increased by about 7.5 percent in the last 24 hours. So DOGE has a much stronger trend than the overall market. Most of the top cryptocurrencies by market cap have seen small price drops over the past 24 hours.
DOGE/USD is trading around $0.093 at the time of publication, closer to the $0.1 level. However, DOGE’s price is still far from the level that triggered the Twitter deal. By early November 2022, DOGE reached prices of just under 0.16 dollars. Doge is currently more than 70 percent away from this brand.
— CRYPTOGENIX (@crypt0genix) January 31, 2023
DOGE’s purchase remains speculative
DOGE is still so weak despite the recent upswing is probably also due to many previous statements and actions by Elon Musk, which damaged not only his own image, but also his companies such as Twitter. kryptoszene.de recently analyzed this in an article.
Therefore, the current upward trend should not be overestimated, but it should only remain a small news pump. Of course, this would be different if Elon Musk announced the introduction of DOGE as a payment method on Twitter. Because that would make the meme token a huge step forward in mass adoption in one fell swoop. According to statistics, Twitter has more than 360 million users worldwide.
However, at the moment, the price of DOGE is still 87 percent below its all-time high from 2021. This means that there may still be a good opportunity to buy DOGE cheaply. However, betting on the Dogecoin payment market for Twitter is pure speculation.
However, some analysts see it as completely questionable to invest in Dogecoin because they miss the fundamental value and real use case of the meme token created as a Bitcoin parody. They recommend better to buy the original bitcoin.
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