Dogecoin (DOGE) had a boost that took it to an almost two-month high after Elon Musk bought a 9.2% in Twitter (a $2,8 billion stake) according to a Securities and Exchange Commission 13G filing released Monday, thus becoming the company’s largest shareholder.
Is Elon Musk going to buy out Twitter?
Elon Musk is the co-founder of Tesla and its CEO. This large purchase seems to be in line with a tweet. pollwhere the users voiced dissatisfaction with the platform.
“Free speech is essential to a functioning democracy. Is Twitter a faithful follower of this principle? It will matter what the results of this poll are. Please vote carefully,” Musk’s poll read, and over 70% of users responded ‘No’.
A functioning democracy is dependent on free speech.
Are you sure that Twitter adheres to this principle in all its actions?
— Elon Musk (@elonmusk) March 25, 2022
Musk, despite being very popular on Twitter, has always been critical of it. His thoughts have been open to the idea of his own platform. He now owns four times more shares than Jack Dorsey, Twitter’s co-founder. This could indicate that Musk is pushing for a plan to bring Twitter closer to Musk’s beliefs, and possibly lead to a purchase.
Dan Ives, an analyst at Wedbush Securities, commented to The Guardian: “We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter.”
Musk’s buy was reflected in the company’s shares price with a spike of over 25% in pre-market trading. Twitter added roughly $8 billion in value when it reached its peak, and Musk’s $2,8 billion stake appreciated to over $3,5 billion.
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What Does It Mean for Dogecoin
“Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. Is there a better way? Is a new platform needed?” Musk had tweetedFollowing the poll. Dogecoin creator responded:
“I think it starts with them clearly articulating their rules – the way they do verification for example seems completely arbitrary, and I feel that many are afraid to tweet what they really think due to risk of being deplatformed if the rules are not clear, it’s a minefield.”
As this buy hints at Musk having a personal interest in turning Twitter’s policy around as he sees fit, it may also read as the CEO acting accordingly to the desires of his followers. And beyond freedom of speech, a lot of Musk’s followers are Dogecoin supporters.
The CEO recently tweeted: videoAbout the coin: This was mostly an satire. It suggests that the cost of the meme currency will rise exponentially and exceed all the larger coins. But Elon Musk jokes aside, he is a strong supporter of DOGE, and his popular events have become a determining factor for DOGE’s price.
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Users expect Elon Musk to push for Dogecoin adoption on the social media site and integrate the coin. DOGE was already used by Elon Musk to pay for Tesla merchandise. Its value soared from $0.15 to $0.20.
DOGE jumped 8.36% in the hours following the announcement, rising from $0.1431 up to $0.155. After a four-month gloomy downtrend, the meme coin’s market cap added over $1.5 billion in less than an hour.
A day before the buy was revealed, a few traders predicted DOGE’s price to climb up to $0.17-$0.18 after it broke local trend resistance with bulls defending the $0.13 zone.
If the bulls can fuel the price above 200 days SMA, the meme coin may see an uptrend. Recent Musk-related events might jump in as an important factor for a climb up depending on further developments and announcements, and as the meme coin records a high correlation with larger coins, Bitcoin’s price movement will also be important for future action.
