Twitter's rebranding catapults the price of Dogecoin (DOGE)
Date: 2023-07-25 Author: Karina Ziganova Categories: BUSINESS
Dogecoin rose by 4+% after Elon Musk announced the rebranding of Twitter into a financial services company and changed the former logo to the ticker DOGE.
At the time of writing, DOGE is trading around $0.074 with an increase of about 2.4% in the last 24 hours. Now the market has already rolled back from the highs reached after Musk once again hinted at the expansion of the platform's functionality and the possible integration of cryptocurrencies.
Rebranding amid a sharp decline in Musk's income
The new week began with the news that Elon Musk replaced the old Twitter logo on the company's website with the letter X. In addition to changes on the site, the title was changed in Musk's own Twitter account.
In addition to the new X symbol, the symbol of DOGE, a popular meme coin long associated with the eccentric billionaire, appeared in the title. Previously, Musk's tweets led to a change in the price of Dogecoin, which recently even served as a pretext for accusing Musk of insider trading.
However, the reason for the rebranding may be much more banal than Musk's fascination with digital assets. In recent months, Twitter's advertising revenue has fallen by 50% as advertisers were unsure about the future of the company under Musk's leadership.
After buying the social network in October last year, Musk laid off a number of key employees and changed his subscription model. The company has also faced resistance in imposing limits on the number of posts viewed, and some users have opted for decentralized alternatives such as Mastodon over Twitter.
Meta's recently launched Threads application also poses a potential threat to the company's main revenue stream. However, so far Threads has not been able to declare itself as a serious competitor to Twitter.
To combat falling revenues, the new head of Twitter, Linda Iaccarino, recently confirmed the addition of new artificial intelligence features, which, as Musk previously hinted, could help the platform combat misinformation. In a July 23 statement, she also confirmed the expansion of the company's activities in payments and financial services.
Can Twitter repeat the success of PayPal
Some Twitter users, including Trust Machines marketing director Dan Meld, called the move "insane," but others cite Musk's success with PayPal as proof of the plan's viability.
Recall that the idea of creating an electronic payment system at the end of the 20th century seemed to be a rather bold adventure. However, Musk took a chance. As a result, in 2000, his financial company X.com merged with the start-up company Confinity, which provides digital wallets. In 2002, the company rebranded, called PayPal, and was bought by eBay.
So the output was a service for money transfers PayPal, now known all over the world. As part of the initial public offering, the company raised $6.1 million at a price of $13 per share. In 2021, according to the results of the Morning Consult study, PayPal ranked second in the world in terms of brand trust.
