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Dogecoin Bearish Despite X Snagging Money Transmission Licenses in a Dozen States in 4 Months

Published April 29, 2024 5:10 PM
Shraddha Sharma
Published April 29, 2024 5:10 PM

Key Takeaways

  • X Payments LLC now holds Money Transmitter Licenses in 25 US states.
  • The microblogging site aims to eliminate the need for money withdrawals.
  • Despite X Payments’ licensing, Dogecoin remains bearish with no sign of its integration.

X Payments LLC , has secured Money Transmitter Licenses across 25 states in the US. A dozen of these approvals came in 2024 as it aims to remove the need for withdrawals while integrating crypto payments. While the development should be good news for Dogecoin, the meme coin remains bearish.

X’s Money Transmitter Licenses

A Money Transmitter License (MTL) authorizes a company to transmit money within a state, under the oversight of that state’s financial regulatory authorities.

X Licenses
X Payments’ Licenses in US States

As X now has 25 licenses under different names in various states, including Arizona, Illinois and Georgia, it is now authorised to deal with transactions in fiat and cryptocurrencies.

Christopher Stanley, Chief Information Security Officer at X Payments, emphasized  its aim for self-sufficiency in financial services.

He believes that users should never feel the need to withdraw money because the platform would ideally offer all necessary financial services, including crypto payments. That said, crypto influencer Alex Finn also reiterated, “This will allow people to basically use X as a wallet. They can save and send money/crypto on here.”

The acquisition of Twitter by Elon Musk, now associated with X Payments LLC, was applauded by the Dogecoin community. Dogecoin creator Billy Markus recently noted  a positive change in his experience with the platform after the second anniversary of Musk’s acquisition.

Despite the development, Dogecoin price action remains mute. ‘DogeFather’ Elon Musk has signed off on no timeline for the meme coin’s integration into the platform yet.

Dogecoin Remains Bearish

X Payments’ foray into financial services that allow crypto exchange on the platform is a bullish event for Musk’s beloved DOGE.

But it has not seen parallel success like it did in March.

When X received licenses in Illinois, New Mexico, and Oregon last month, Doge had seen a marginal surge. But, more technicals might be at play here.

According to a report by Santiment, while non-empty Bitcoin wallets have continued to grow, activity around Dogecoin has flattened. The stagnation comes despite previous surges, indicating a cooling-off period.

At the time of writing, DOGE is the 9th largest crypto by market capitalization. CoinGecko data  finds that the meme coin has lost 30% of its value in the last month with weakness continuing on the daily and weekly charts.

The 24-hour price range of Dogecoin remains between $0.14 and $0.15, almost 80% below its record price. DOGE was close to $0.73 in March 2021.

Despite the downturn, only 16% of Doge holders are  currently at a loss while 80% are ‘in the money’ or at a profit at the market price.

Doge Disconnected With X

X Payments LLC’s acquisition of Money Transmitter Licenses across a wide range of states should be a positive for Dogecoin. However, Dogecoin price is showing that licensing and platform enhancements alone may not directly its value anymore.

The bearish trend in Dogecoin is rather a play of market sentiments and on-chain and exchange signals. This could also mean that the DOGE market is maturing.

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