On October 29, Dogecoin saw a gain of over 70%, continuing this week’s gains after Elon Musk’s acquisition of Twitter for $44 billion.
Doge and Bitcoin values have significantly changed, as a result of Tesla CEO Elon Musk’s ardent endorsement of cryptocurrencies.
Starting this year, Tesla is officially dealing in Dogecoin. Musk also launched a luxury perfume line which now accepts payment in the meme currency.
The token’s price frequently follows the CEO of Tesla’s remarks as they are made. Since Wednesday, when the CEO of SpaceX changed his Twitter bio to “Chief of Twit,” Doge’s value has increased significantly. Dogecoin experienced a price hike in April 2022, after Musk first gave a hint about using dogecoin as a payment option for Twitter’s Blue membership service. While, in June, it experienced a downfall when Musk attempted to back out of the purchase.
Twitter’s future under Musk
This month, Musk tweeted that he was acquiring Twitter to build an “everything app.”
People across the globe who got their accounts banned or suspended earlier are reaching out to Musk to provide them access to their accounts after he pledged to reinstate free speech on Twitter.
A content moderation team “with vastly diverse opinions” will be created by Twitter, he said on Friday. Before the team convene, no significant content decisions or account reinstatements will be made.
Musk claimed that a new ranking-based feature is soon to go live which would enable users to select the version of the social networking site they prefer by ranking their tweets.
Dogecoin saw a price increase of nearly 27% on Monday, as word of Elon Musk’s acquisition of Twitter spread. By day’s end, the share price of Twitter surged by 5.6 percent. At the time this was written, the meme currency value too increased from $0.12 to $0.16. Musk is Twitter’s largest stakeholder, owning 9.2% of the firm.
Although, there is no direct connection between the Twitter acquisition and the increase in Dogecoin prices. Still, investors, have been anticipating that Dogecoin would find a place in Twitter’s long-term plans. As a result of this announcement, a lot of speculative activity in the cryptocurrency markets was witnessed.
Musk-Doge-Twitter
Elon Musk, who proclaimed himself the “Father of Doge” in 2021, had a significant influence on the price changes of the cryptocurrency through his tweets. Ahead of Musk’s posts, Dogecoin surged to an all-time high of 67 cents, in May 2021.
Doge’s price increase in 2021 can easily be attributed to the buildup to Musk’s appearance on “Saturday Night Live” ( a TV show of NBCUniversal) on May 8, 2021, which even managed to crash Robinhood’s trading app.
Dogecoin has conveniently transformed into a speculator’s paradise after Musk hailed it as “people’s crypto.”
Further, Twitter, developing a cryptocurrency wallet is also coincidental and corresponds to the apparent surge in the prices of Dogecoin.
Is Dogecoin worth the hype?
There isn’t much someone can do with Dogecoin, compared to other cryptocurrencies like Ether that offer programmers the ability to create applications on their platform to do things like trade and take funds.
Given that this normally necessitates a certain level of long-term faith in the coin and the blockchain upon which it’s been established, Dogecoin isn’t really a trustworthy store of wealth either.
The rise in the value of dogecoin seems to be mere conjecture. Dogecoin has value just because of people’s perception that it is valued based on the presumption that someone else would buy it from them at a higher price.
To a plausible extent, Dogecoin can be branded as a “joke,” or a retaliation by disruptors such as Musk to stick it to the existing establishments and prove to them that with enough capital to back an idea (be it a meme for that matter), literally, anything can have lasting value.
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