Multiple media outlets reported Tuesday that Dogecoin (DOGE), soared close to 30% after Elon Musk purchased Twitter Inc.
According to CoinMarketCap statistics, the cryptocurrency with a Shiba Inu meme was up 22.14% to $0.162 on Tuesday. Twitter’s stock closed 5.6 percent higher on the day.
This development comes minutes after Musk’s Twitter takeover was made public.
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Late Monday, Twitter announced that it has reached a “definitive agreement to be bought by an entity entirely owned by Elon Musk for $54.20 per share in cash, in a transaction valued at about $44 billion.”
Once the transaction is finalized, the social media behemoth will revert to a status as a “privately held corporation.”
Musk suggested several ideas recently for improving Twitter. (Image credit: Deadline)
Musk made the following statement Monday:
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”
Dogecoin is on the Rise
Musk is a strong advocate for digital currencies. He recently said that he wouldn’t sell his Dogecoin, but would keep his Bitcoin and Ether assets.
The rise of Dogecoin, a so-called memecoin — so-called because it is mostly based on an online joke rather than a substantial blockchain project — has been spurred by the Tesla CEO.
Musk has stirred the cryptocurrency markets’ nest in the past. In February 2021, the electric vehicle manufacturer said that it had purchased $1.5 billion in Bitcoin and intended to accept it as payment, triggering a spike in both the company’s stock and the currency.
Musk changed his position in May. This precipitated a fall in Bitcoin and other cryptocurrency’s values.
Source: TradingView.com| Source: TradingView.com
According to Coin Metrics, Dogecoin reached an all-time high in May 2012, at 67 cents.
The cryptocurrency’s value frequently varies in response to celebrity endorsements like Musk, Kiss’s Gene Simmons, and rapper Snoop Dogg.
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Is it of real value?
Dogecoin’s supply is unlimited, which means that as more tokens are issued, its price should theoretically drop. Mark Cuban, a billionaire entrepreneur and investor, has stated that bitcoin has “no intrinsic value.”
Jack Dorsey, Twitter’s former CEO and co-founder, left the company in November to focus on his payments startup, which rebranded to Block (from Square) to reflect greater goals in cryptocurrencies and blockchain technology.
Musk offered several ways to make the microblogging website better. Musk also recommended that Dogecoin is used on the social networking site as a method of payment.
Speculators have bought dogecoin because of Musk’s “obsession with the cryptocurrency,” and hence the potential for dogecoin to be given additional utility on one of the top social media networks if Elon is successful, according to Marcus Sotiriou, an analyst at digital asset broker GlobalBlock.
Featured image by CryptoHubK. Chart by TradingView.com
