Doge Jumps 30% After Elon Musk Buys Twitter
Dogecoin (DOGE) surged nearly 30% Tuesday after Elon Musk agreed to buy Twitter Inc for $44 billion.
The cryptocurrency depicting a Shiba Inu meme, which has long been a favorite of the centibillionaire, was up 22.14 percent to $0.162. Twitter’s stock finished the day up 5.6 percent. This news came just minutes after Musk’s ownership of Twitter became public. Twitter started late Monday that it had struck a definitive agreement to be bought by an entity completely owned by Elon Musk for $54.20 per share in cash; in a transaction valued at about $44 billion.
After completing the transaction, the social media behemoth will reclassify as a “privately held corporation.”
Musk has been an outspoken supporter of digital currencies; he recently indicated that he would not sell his Dogecoin holdings and keep his Bitcoin and Ether holdings.
The emergence of Dogecoin, a so-called memecoin based on an online joke rather than a genuine blockchain project, has been fueled by Tesla CEO Elon Musk.
Musk has previously roiled the bitcoin markets. The electric vehicle manufacturer said in February 2021 that it had purchased $1.5 billion in Bitcoin; moreover, it intends to accept it as payment; this caused both the company’s stock and the currency to rise.
However, Musk altered his opinion the following May, causing the value of Bitcoin and other cryptocurrencies to fall. According to Coin Metrics, his posts drove Dogecoin to an all-time high of 67 cents in May of the same year.
The value of bitcoin fluctuates in response to celebrity endorsements such as Musk, Kiss’s Gene Simmons, and rapper Snoop Dogg.
Value of DOGE
The supply of Dogecoin is infinite; hence its price should decline as the coin amount grows. According to Mark Cuban, a millionaire entrepreneur, and investor, bitcoin has “no fundamental value.”
In November, Twitter’s former CEO and co-founder, Jack Dorsey, departed the company to focus on his payments startup, Block (formerly Square), which rebranded to Block (from Square) to reflect more significant objectives in cryptocurrencies and blockchain technology. Musk recently proposed several ways to improve the microblogging service. He also advocated for Dogecoin to accept as a payment method on the social networking site.
Speculators have purchased Dogecoin because of Musk’s obsession with cryptocurrencies; Therefore, the potential for Dogecoin is to give extra utility on one of the extensive social media networks if Elon is successful.
