Dogecoin (DOGE) rose 4% after Elon Musk announced the rebranding of Twitter as a financial services company and changed his Twitter header to the DOGE ticker symbol.
The asset is currently up about 2.4% in the last 24 hours after Musk hinted the rebranding could include cryptocurrencies. The asset’s price had shed much of its gains at press time, changing hands at $0.075480.
Musk’s Twitter Rebranding Comes Amid Sharp Revenue Declines
Early Sunday morning New York time, Musk replaced the Twitter logo with X on the company’s website. Accompanying the website change was a revised header on Musk’s own Twitter account.
In addition to the new X symbol, the header contained the symbol for DOGE, a coin long-associated with the sometimes-eccentric billionaire. Musk’s tweets have previously moved the price of Dogecoin, prompting a recent allegation of insider trading.
In addition, Tesla announced it sold off a notable share of Bitcoin, suggesting that Musk’s interest in crypto may not be just limited to the dog-themed meme coin.
Find out here where to buy Dogecoin.
However, the reason for the rebranding could be far more mundane than Musk’s affinity for digital assets. Twitter’s advertising revenue has declined by 50% in recent months as advertisers were uncertain about the company’s future under Musk.
After buying the social media company in October, Musk fired key staff members and introduced a much-derided subscription model. The company also faced resistance to introducing viewing limits for posts, with some users opting for decentralized alternatives like Mastodon.
Meta’s recently-launched Threads application also poses a threat to the company’s primary income stream.
To combat the decline in income, chief executive Linda Yaccarino recently confirmed new AI features which Musk previously hinted could combat disinformation. She also confirmed the expansion into payments and financial services in a July 23 post.
Could Twitter Follow Same Route as PayPal?
While some on crypto Twitter, including Trust Machines’ chief marketing officer Dan Meld, have called the move “insane,” others cite Musk’s success with PayPal as evidence of the plan’s viability.
The billionaire’s financial services company X.com merged with digital wallet firm Confinity in 2000. Musk reportedly canceled PayPal’s other services to focus on payments later that year.
The newly-formed company rebranded as PayPal in 2002 and raised $6.1 million at $13 per share in an initial public offering. In 2021, a Morning Consult survey revealed that PayPal was the second-most trusted brand globally.
In addition, the company offers crypto purchases on its platform.
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