Elon Musk confirms X will “never launch” a crypto token; DOGE community bullish on token’s likely adoption
- Elon Musk addressed the rumors of a Twitter or X token launch and stated that the platform would “never launch” a crypto token.
- Dogecoin’s community of holders grows hopeful that the meme coin could find utility on X’s platform, given there will be no new token launch.
- DOGE price rallied 5.5% since Musk’s announcement, and the coin's social media dominance is rising.
The crypto community on X (formerly Twitter) speculated the launch of a crypto token for the platform. Elon Musk ended the speculation and confirmed that X would “never launch” a crypto token.
Dogecoin price started its recovery in response to Musk’s tweet; price climbed 5.5% on Saturday, trading at $0.0753 at the time of writing.
Also read: Gary Gensler’s crypto crusade likely to end if judge dismisses Coinbase case over Ripple ruling
Elon Musk ends rumors of X token launch
Rumors of an X token and its launch have made headlines for weeks, fueling speculation in the crypto community. Musk put an end to the rumors in his recent tweet earlier today. A pro-Dogecoin analyst @cb_doge asked his 243,800 followers to beware of news that announces the X token launch.
Musk chimed in and added that X would never launch a crypto token.
And we never will
— Elon Musk (@elonmusk) August 5, 2023
The Dogecoin community perceives Musk’s comment as an opportunity for DOGE to find utility and acceptance by “X” as a payment method in the future. Musk has emerged as a supporter of the meme coin several times over the years, referring to himself as the “self-proclaimed DogeFather."
Musk’s acceptance of the meme coin fuels a bullish sentiment among the DOGE community of holders now awaiting an announcement for the meme coin to be accepted as payment for subscription or other services on the X app.
Dogecoin's social dominance and price rallies
Social dominance, an on-chain metric measuring an asset's relevance and its mention among market participants on social media platforms, is considered a key indicator of sentiment among holders. DOGE’s social dominance is on the rise, according to Santiment data.
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DOGE social dominance vs price
The rise in social dominance has coincided with a rally in the meme coin in previous instances, making it likely that the DOGE price will continue its recovery. DOGE price climbed 5.5% from $0.072 to $0.076 on Binance in less than 24 hours since Musk’s tweet.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group, or entity, eliminating the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
