On Wednesday (January 8), Dogecoin (DOGE) experienced a massive sell-off, plummeting over 10%, as the bullish trend of the Trump Trade dissipated. Billionaire Elon Musk stated during a live broadcast that Twitter would not introduce Dogecoin for payments due to the need for appropriate licenses, debunking rumors from earlier in the week.
Trump will be sworn in on January 20, with the market focused on the prospect of him fulfilling pre-election promises to provide a more favorable regulatory environment for Bitcoin and cryptocurrencies, and to establish a Bitcoin strategic reserve. Musk has formed a close relationship with Trump in this round of campaigning, having been appointed as the leader of the newly established Department of Government Efficiency (D.O.G.E).
Musk's Twitter announced that this year it will implement the Twitter payment feature, named X Money.
To date, Twitter has obtained money transmitter service licenses in 39 states across the U.S., all registered with a company called X Payments LLC.
Well-known tech commentator Aaron revealed details about the Twitter code leak, suggesting that the payment feature X Payments, set to be implemented this year, may launch without obtaining approval from all 50 state regulators.
Noted tech journalist Alex Finn stated, 'X Payments will somehow support cryptocurrency... Cryptocurrency could be an important avenue for Twitter payments.'
Meanwhile, if X Payments embraces cryptocurrency, it could drive the market to soar, similar to the market surge triggered by PayPal's adoption of cryptocurrency in 2021, which propelled Bitcoin's historic bull market. Additionally, Musk's broad attention to financial innovation, combined with the fact that the acronym for the government efficiency department he leads is the same as Dogecoin, positions Dogecoin firmly in the discussion.
But during the Twitter live test, Musk addressed topics related to Twitter payments, denying market rumors.
He stated, 'Cryptocurrency will not be used in Twitter's payment service in the near future, as the appropriate licenses are needed, and the focus will now be on fiat currency.'
Notably, cryptocurrency media BlockTempo verified the live broadcast video and found that Musk mainly discussed game mechanics, and no information regarding Twitter payments was discovered.
Despite the varying requirements for money transmitter service licenses across states in the U.S. and the privileges granted by those licenses, these licenses typically allow companies to send, receive, and transfer funds for customers on a national and international scale, and also permit foreign exchange transactions, such as exchanging foreign currency for U.S. dollars, as well as issuing prepaid cards, with this definition encompassing both fiat and cryptocurrencies.
However, if the sources are true, it indicates that Musk has not prioritized support for cryptocurrency.
Following the news, Dogecoin not only faced negative pressure from the traditional market's surprise U.S. JOLTS data, and hawkish signals from Federal Reserve officials but also Musk's rumor denial triggered a short-seller battle.
