Last week, Twitter users were met with a surprising sight as the iconic bird logo was swapped out for an image of the internet sensation, a Shiba Inu. Many initially thought it was a late April Fools’ prank. However, this move seemed to have an unintended effect on the value of Dogecoin, the cryptocurrency that features the same dog as its symbol, with its value surging by nearly 30% overnight. Despite this boost, Dogecoin is still a long way off its peak from last year.
- Dogecoin is now ranked seventh biggest cryptocurrency on CoinMarketCap.com, surpassing many other digital currencies.
- The digital asset has the potential to offer more than just a simple tipping function on Twitter; it can help with spam bots.
- Musk has floated the idea of implementing a nominal fee, which could be paid by Dogecoin.
How Twitter’s Replacement Logo Affected Dogecoin
Dogecoin has made some serious waves in the world of cryptocurrencies, with a staggering market capitalization of $US13.7 billion. This places it in the esteemed position of being the seventh biggest cryptocurrency on CoinMarketCap.com, surpassing many other established digital currencies. Before the latest news, its market value had been hovering around the $US10 billion mark.
A Crypto-Related Progress for Twitter
It’s no secret that Elon Musk, the renowned entrepreneur who holds the title of the second-richest person in the world according to Forbes, is a strong supporter of cryptocurrencies. His vocal endorsements and influence have previously impacted the value of both Dogecoin and bitcoin, leaving many to wonder what the future holds for these digital assets in his capable hands.
Crypto enthusiasts may be holding out hope that Elon Musk will add Dogecoin to Twitter’s cryptocurrency holdings, but given the extreme volatility of the digital asset, this outcome seems unlikely. In fact, even compared to Bitcoin, Dogecoin’s price fluctuations are particularly dramatic. Instead, a more promising move Musk could make to boost the pro-crypto cause is expanding Twitter’s payments platform to include a wider variety of digital assets.
Twitter already made a significant move in this direction in 2021 by launching a tipping function that allows users to pay content creators in Bitcoin. Tesla also made a splash in the crypto world last year by announcing it would accept Dogecoin as payment for merchandise purchases.
Predicting an Optimistic Future
Dogecoin has the potential to offer more than just a simple tipping function on Twitter. In fact, the cryptocurrency could help address one of Elon Musk’s biggest grievances with the platform: spam bots. Musk has floated the idea of implementing a nominal fee, even as low as a fraction of a penny, for users who wish to comment or repost comments. Such fees could be paid in Dogecoin, providing a practical use case for the digital asset.
This move could have the added benefit of deterring bots, thus making Twitter a more enjoyable and trustworthy platform for users. Furthermore, implementing such fees could potentially channel enormous trading volumes to Dogecoin.
While this solution may not be a universal answer to all of Twitter’s problems, it’s certainly a step in the right direction.
Fans of the lovable Shiba Inu-themed cryptocurrency will undoubtedly hope that Twitter follows suit in the near future. While there have been few signals until now of Twitter making any significant crypto-related progress, the recent symbolic gesture last week has certainly fueled speculation stressing on the fact that Dogecoin is far more than just a playful digital asset.
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