Dogecoin (DOGE) rose 4% after Elon Musk announced it was rebranding Twitter as a financial services company and changing its Twitter header to the symbol DOGE.
The asset is currently up around 2.4% in the last 24 hours after Musk hinted that a rebrand could include cryptocurrencies. The price of the asset had given up much of its gains at press time, trading at $0.075480.
Musk’s Twitter rebranding comes amid a sharp decline in revenue
Early Sunday morning New York time, Musk replaced the Twitter logo with an X on the company’s website. A revised header on Musk’s Twitter account accompanied the website change.
In addition to the new X symbol, the title contained the DOGE symbol, a coin long associated with the sometimes eccentric billionaire. Musk’s tweets have previously moved the price of Dogecoin, leading to a recent claim of insider trading.
Additionally, Tesla announced that it sold a notable stake in Bitcoin, suggesting that Musk’s interest in cryptocurrency may not be limited to the dog-themed meme.
Find out here where to buy Dogecoin.
However, the reason for the rebranding may be more simple than Musk’s affinity for digital assets. Twitter ad revenue has fallen by 50% in recent months as advertisers have been unsure of the company’s future under Musk.
After buying the social media company in October, Musk fired key employees and introduced a ridiculous subscription model. The company has also encountered resistance to introducing display limits for posts, with some users opting for decentralized alternatives such as Mastodon.
The recently launched Meta Threads app poses a threat to the company’s primary revenue stream.
To combat the drop in income, CEO Linda Iaccarino recently confirmed new AI features that Musk previously hinted could combat misinformation. she also Certain The expansion of payments and financial services last July 23.
Could Twitter follow the same path as PayPal?
While some on crypto Twitter, including Trust Machines’ chief marketing officer Dan Meld, called the move “crazy,” others pointed to Musk’s success with PayPal as evidence of the plan’s viability.
Billionaire financial services company X.com merged with digital wallet company Confinity in 2000. Musk reportedly canceled other PayPal services to focus on payments later that year.
The newly formed company rebranded to PayPal in 2002 and raised $6.1 million at $13 per share in an initial public offering. In 2021, a survey conducted by Morning Consult revealed that PayPal was the second most trusted brand globally.
In addition, the company offers cryptocurrency purchases on its platform.
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