Dogecoin (DOGE) Jumps 30% After Elon Musk Buys Twitter


Dogecoin (DOGE) rose nearly 30% on Tuesday after Elon Musk agreed to acquire Twitter Inc for $44 billion, multiple news sources reported.

The Shiba Inu meme cryptocurrency, which has long been a favorite of the centibillionaire, rose 22.14 percent to $0.162 as of 1:10 a.m. IST Tuesday, according to CoinMarketCap stats. Shares of Twitter 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 “final agreement to be acquired by an entity wholly owned by Elon Musk for $54.20 per share in cash, in a transaction valued at approximately $44 billion. “

Once the transaction is completed, the social media giant will return to a status as a “private company.”

Recently, Musk had suggested several ways Twitter could be improved. (Image credit: Deadline)

In a statement on Monday, Musk said:

“Freedom of speech is the foundation of a functioning democracy, and Twitter is the digital city square where issues vital to the future of humanity are discussed.”

The Rise of Dogecoin

Musk is an outspoken advocate of digital currencies; he recently stated that he would not sell his Dogecoin and also keep his Bitcoin and Ether holdings.

The rise of Dogecoin, a so-called memecoin — so named because it’s usually based on an online joke rather than a substantial blockchain project — has been spurred on by Tesla’s CEO.

Musk has rocked the nest of the cryptocurrency markets in the past. In February 2021, the electric vehicle maker said it had purchased $1.5 billion in Bitcoin and planned to accept it as payment, triggering a spike in both the company’s stock and currency.

Musk, however, reversed his stance in May, causing a drop in the value of Bitcoin and other cryptocurrencies.

DOGE’s Total Market Cap at $21.56 Billion on the Daily Chart | Source: TradingView.com

In May of the same year, its posts catapulted Dogecoin to an all-time high of 67 cents, according to Coin Metrics.

The value of the cryptocurrency often fluctuates in response to recommendations from celebrities such as Musk, Kiss’s Gene Simmons and rapper Snoop Dogg.

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Does it have real value?

Dogecoin’s supply is unlimited, which means that as more tokens are issued, the price should theoretically decrease. Mark Cuban, a billionaire entrepreneur and investor, has stated that bitcoin has “no intrinsic value”.

Jack Dorsey, the former CEO and co-founder of Twitter, left the company in November to focus on its payments startup, which was renamed Block (from Square) to reflect bigger goals in cryptocurrencies and blockchain technology.

Musk recently offered many methods to improve the microblogging site. In addition, he insisted that Dogecoin is used as a payment method on the social networking site.

Speculators have been buying dogecoin because of Musk’s “obsession with the cryptocurrency,” and therefore the potential for dogecoin to gain 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 of CryptoHubK, Chart of TradingView.com

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