X secures Rhode Island license, opens doors to cryptocurrency payments

Category: Blockchain Crypto Regulatory

Formerly known as Twitter, X obtained a Rhode Island Currency Transmitter License on August 28. The license enables X to store, transfer, or convert digital assets on its platform and manage those assets on behalf of others.

X had previously integrated the Bitcoin tipping feature in 2021. In 2022, the platform incorporated NFTs, allowing paid subscribers to validate their NFT ownership. The acquired license further opens the door for cryptocurrency payments for its 330 million active users.

The crypto community now wonders if Elon Musk is funding the crypto landscape through Dogecoin (DOGE). The development comes despite the slowdown in the market, with a 90 percent price collapse of the cryptocurrency.

The exact amount of Musk’s investment or sponsorship in Dogecoin remains unclear. In July, he added the Dogecoin symbol to his X account, leading experts to believe that he was hinting at a change in the crypto market via the social media platform.

This was not the first time he expressed his support for Dogecoin. In Full Send Podcast Friday last year, he praised the currency’s transaction speed compared to Bitcoin. He also pointed out the inflationary feature, which he sees as beneficial as a transactional currency.

Musk’s journey with cryptocurrencies has been dynamic. While Tesla initially invested in Bitcoin and accepted it as payment, the former CEO later criticized Bitcoin’s environmental impact. Since then, he has become a vocal advocate for Dogecoin, dubbing himself “The Dogefather.”

Tesla later disclosed that it had sold 75 percent of its Bitcoin investment to maintain profitability. The company retained its Dogecoin holdings, along with Musk’s intention to acquire more.

The Tesla founder has been supporting this project since 2018. His ambition is for Dogecoin to outshine Bitcoin and become the currency of Earth.

With a market cap of $9 billion, Dogecoin is one of the largest cryptocurrencies in the market. Despite Musk’s endorsements, its price has declined significantly over the past year, falling by over 90 percent since May 2021. As of the latest data, it was trading at $0.06354, less than a ten percent increase in the past 24 hours.

SEC delay affects crypto markets and funding

The drop in crypto market price is due to the delay in the U.S. Securities and Exchange Commission (SEC) decision on Bitcoin Exchange-Traded Fund (ETF) applications.

The market has been anticipating SEC approval to attract more investors in the sector. But the delay, which will last until October, has dampened the optimism for investments.

The SEC’s decision highlights the ongoing uncertainty in the market. In August, investments in cryptocurrencies and Web3 significantly dropped. The sectors received less than half a billion dollars, the lowest in two years. Venture capitalists are more careful with their investments, refraining from high-valuation startups that fail to deliver results.

This problem is not only for crypto companies. Other startups are also having difficulty gaining investors, excluding sectors like artificial intelligence. Crunchbase data show a 53 percent investment decline in the first quarter of this year compared to the same period in 2022.

The crypto market is still unsteady, but several firms have managed to secure funding. In March and May, Worldcoin developers raised a total of $165 million. BitGo, the crypto-custodian, secured $100 million in August for strategic acquisition and expansion.

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