Elon Musk's $3 billion stake in Twitter causes a 10% increase in Dogecoin.
Musk purchased a 9.2 percent interest in Twitter for little under $3 billion on Monday, according to reports. On hearing the news, Dogecoin, Musk's cryptocurrency that he owns and frequently supports, jumped 10%. This morning, the DOGE token of Dogecoin increased from $0.143 to roughly $0.156.
- DOGE rose from $0.143 to over $0.156 few minutes after news of Musk's ownership surfaced around 10:30 UTC, according to data. Prices had fallen to $0.154 at the time of writing.
- Some other meme coins saw a correlated effect as a result of the surge. SHIB, the Shiba Inu stock, increased by 5% in tandem with the DOGE price movement.
- Musk owns more than 73.5 million Twitter shares, which are worth more than $2.89 billion at current market rates.
- Musk is one of the most well-known cryptocurrency supporters. At the end of 2021, his electric vehicle business Tesla was said to have over $2 billion in bitcoin. Tesla also began taking bitcoin for its cars in 2021, but the initiative was ultimately shelved due to environmental concerns.
- Tesla's online goods store also takes DOGE payments. DOGE prices had earlier risen 11% in January as a result of the announcement.
- On Monday, Mati Greenspan, the founder and CEO of Quantum Economics, declared on CoinDesk TV's First Mover show, "Cryptocurrencies are not enterprises." "You don't have a profit and loss statement or anything like that." It's essentially the network's power. And when there's a buzz, the network grows in strength as a result of the increased attention."
- "This essentially raises demand, which raises the price," Greenspan explained. "It's possible to make an indirect relationship. If Elon Musk is guiding the machine in terms of messaging, he'll seize any opportunity to drive DOGE forward."
- "While there appears to be no direct correlation between the Elon Musk and Twitter deal and the DOGE memecoin's growth, the tight knitted relationship between Elon Musk and the slew of Dogecoin investors around is a testament to the tight knitted relationship between Elon Musk and the slew of Dogecoin investors around," Alexander Mamasidikov, co-founder of mobile digital bank MinePlex, says.
- "Dogecoin stands to benefit a lot in the short term if Musk continues to promote the coin on Twitter, as he has done in the past, but this time without the looming threat of being limited. If the buyup momentum continues, Dogecoin may be able to break through the $0.2 resistance in the near future "Mamasidikov continued.
- Musk has previously backed the development and adoption of the dogecoin cryptocurrency. He tweeted in May that he was working with dogecoin engineers to make the system more efficient. Dogecoin prices increased by 22% as a result of this.
- Then, in June, he tweeted that it was "critical to support" a proposal to lower dogecoin costs, making the cryptocurrency more competitive with other cryptocurrencies.