Twitter management via Dogecoin. How Elon Musk will develop the social network
Experts told GetBlock Magazine whether the businessman will integrate cryptocurrencies into the social network and how this may affect the digital asset industry
In late April, it was announced that Tesla and SpaceX CEO Elon Musk, who has been a loyal supporter of Dogecoin, bought the social network Twitter for $44 billion. After that, Doge's exchange rate rose by 29%. Previously, the entrepreneur repeatedly spoke positively about the altcoin and even called it the “people's” cryptocurrency.
Shortly before the deal, the entrepreneur suggested making Dogecoin a means of payment for the Twitter Blue service. The editors of GetBlock Magazine asked experts whether Musk would integrate the cryptocurrency into Twitter.
Top news of recent days
The purchase of Twitter by Elon Musk is the biggest news in the world of social networks in recent days, according to Sergei Khitrov, the founder and CEO of Listing.Help agency. According to him, this deal may lead to the following consequences:
- the possibility of adding Dogecoin to Twitter as a native cryptocurrency. Tesla already accepts the altcoin as payment for merchandise, and the first offline Dogecoin transaction was made using Starlink terminals. This may mean that the likelihood of DOGE integration with Twitter is high, Khitrov notes.
- the possibility of bitcoin being added to Twitter because two other companies of Elon Musk, Tesla, and SpaceX, hold bitcoin on their balance sheets. Since Twitter will soon be under Musk's control, it will be interesting to see if he will add BTC to Twitter's balance sheet, and how that will affect the price of bitcoin itself, the expert says.
- changes in the functionality of the social network. Khitrov reminded that in a press release issued after purchasing Twitter, Musk wrote that he planned to make the social network “better than ever by enhancing the product with new features.” The founder of Listing.Help conceded that NFT tools may soon be integrated into Twitter, and Dogecoin may start to be used as a social network management token.
What will happen to Dogecoin in the near future
Integration of Dogecoin into Twitter is possible only to once again cause a wave of hype around the social network and cryptocurrencies, Dmitry Noskov, expert of StormGain cryptocurrency exchange, believes. In his opinion, there are no serious economic justifications for such a step, because it will not bring the company a significant profit. At the same time, integration of the altcoin into the social network will positively affect the value of the coin, but only in the short term, Noskov said.
According to the prediction of the expert of StormGain cryptocurrency exchange, after Dogecoin is added to Twitter, the cryptocurrency price is capable of exceeding $1 in a moment. However, after that it will significantly decrease against the background of correctional movements, Noskov explained.
As of 4:30 p.m. Moscow time on May 6, Dogecoin is trading at $0,12 and has a capitalization of $16,8 billion, according to CoinGecko. The cryptocurrency has fallen in price by more than 26% in a month.
Noskov and Khitrov agreed that Elon Musk will soon want to develop Twitter as much as possible and will add various features and capabilities to the social network.
“In all likelihood, it will be all at once and more: new services, NFTs, and cryptocurrencies,” the expert of StormGain cryptocurrency exchange believes.
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