Dogecoin jumps 12% at prospects of X crypto payments
Meme-inspired cryptocurrency tokens Dogecoin (DOGE) and Floki Inu (FLOKI) experienced a brief 12% surge before retracting, driven by increased interest following the appearance of the @xpayments account on the X (formerly Twitter) social media platform. Trading volumes for both tokens surged by 200% over the weekend, and open interest in DOGE and FLOKI futures climbed from $200 million to a cumulative $430 million as the crypto community traded on the potential for the adoption of the canine coins as the crypto of choice for X payments. Although Dogecoin's price has dipped since the beginning of the week, it is still trading around $0.078 at the time of writing on 24 January as traders wait for Musk to throw — or drop — the ball.
Speculating on Musk's next move?
It's no surprise that any hint of a payment system on X would be a treat for the canine coins. DOGE, known for its tendency to react to payment-related developments in Elon Musk's ventures like X and Tesla, is often subject to market fluctuations and has historically been tied to Musk's — the so-called Dogefather — publicity stunts. On the other hand, Floki, which is named after Musk's dog, is a popular speculative asset.
The speculation around these meme coins revolves around the possibility of using DOGE for various purposes, such as paying for ads on Twitter. Such a development would be a game-changer for Dogecoin, a currency looking for a purpose, and there is some precedent when it comes to Musk's businesses. Tesla, for example, has previously approved cryptocurrencies for transactions and currently accepts DOGE for merchandise purchases in its online store.
While there is no official confirmation of DOGE becoming a payment option alongside Bitcoin (BTC) or Ethereum (ETH), the speculations are not necessarily baseless. In April 2023, Musk hinted at DOGE payments for Twitter Blue, the platform's subscription service. Historically, he has been a strong advocate for Dogecoin, although not everyone is convinced it will be the most likely cryptocurrency for payments on X. Musk's great appreciation for the 24th letter of the alphabet could also be an indicator that Ripple (XRP) or other cryptos with tickers starting with 'X' could be strong contenders.
Is Xpayments legit?
The @xpayments account, established late on a Friday, quickly gained over 100,000 followers. Earlier in January, X announced plans to introduce peer-to-peer payment capabilities on its platform, with Musk indicating potential cryptocurrency integration. This account would be an indication that the payment plan will go ahead as planned.
Although the newly created account has yet to post any content, it is marked with a gold badge for verification and an X badge confirming its association with the company.
When can you pay with crypto on X?
Elon Musk has made no secret of his ambition to transform X into his ideal 'everything app', and that certainly includes online payments, the field in which Musk first made a name for himself.
In 2023, X applied for money transmitter licences in several US states. Musk himself has stated that he expects payments on X to be launched sometime by mid-2024. However, there is no certainty on whether X payments will operate with anything other than traditional fiat currencies.
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While the specific details of payment features for X remain uncertain, the recent boost for these dog-themed cryptocurrencies shows that there is still money to be made on meme coins. If you're interested in trading Dogecoin or similar altcoins in the crypto market, StormGain provides optimal conditions for new or experienced traders alike. StormGain offers trading pairs like SHIB/USDT and DOGE/USDT, along with the unique opportunity to trade SHIB/DOGE against each other. Additionally, StormGain users enjoy exclusive benefits, including a complimentary Bitcoin cloud miner and staking options.
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