News hardware Crypto: why does dogecoin (DOGE) turn on after Elon Musk’s Twitter takeover?
While the Tesla CEO has just offered the social network Twitter for the modest sum of $ 44 billion, the crypto DOGE courses seem to appreciate the novelty … In fact, since the acquisition of the blue bird by Elon Musk, the The most famous upside-down “coin meme” dog has seen its price drastically increase in a matter of days. That’s why the rise of Dogecoin cryptocurrency is highly correlated with Musk’s acquisition of Twitter.
Dogecoin (DOGE): Elon Musk’s favorite currency
Between Elon Musk and Dogecoin, it’s a love story that doesn’t go back to yesterday … It all started with a tweet from Elon Musk in April 2019:
“Dogecoin could be my favorite cryptocurrency. It’s very beautiful.”
Indeed, in recent years, Elon Musk has enjoyed raising the Doge’s courses according to his mood. These various interventions on Twitter generated a strong enthusiasm for the cryptocurrency which had the effect of making Elon Musk the Dogecoin guru.
The process is simple: the billionaire tweets regularly about the DOGE to see his price go up instantly. Not just a practice given that Dogecoin is one of his three cryptocurrency investments along with Bitcoin and Ethereum.
Despite allegations of price manipulation, Elon Musk has never stopped supporting Dogecoin, to the point of integrating the use of DOGE cryptocurrencies in his various companies.
Thus, despite the fall of cryptocurrencies, Elon Musk allowed DOGE holders to use cryptocurrencies as a means of payment on the online merchandising stores of his companies: SpaceX and Tesla.
Why the price of Dogecoin (DOGE) explodes after the acquisition of Twitter
The news of the US billionaire’s acquisition of Twitter excited DOGE fans, who have invested heavily in cryptocurrencies. Since October 25, the cryptocurrency has seen a monumental rise while the market is not in its best shape. The price of the DOGE, in fact, has seen its price multiply by 3, passing from € 0.05 to € 0.15.
As explained above, Elon Musk has been a constant advocate of cryptocurrency through several initiatives. Hence, many speculate that the new Twitter CEO may have the ambition to integrate the use of DOGE through features on the social network.
These dogearmy advocates are hoping to see mass adoption by Twitter users if that happens, meaning the price could potentially rise. This is why many investors have positioned themselves within a few days, thus pushing the price higher.
However, for the moment, these are only speculative assumptions, based on evocative elements …
Long before the acquisition of Elon Musk, Twitter never hid its attraction to web 3 and blockchain technologies. Therefore, for more than a year, the social network has gradually integrated features that affect cryptocurrencies or even NFTs.
For example, Twitter offers “Bitcoin tipping”, a feature that allows you to use your Bitcoins to donate to content creators on the social network. Also, with the Twitter Blue premium membership, you can display your NFT and properties on your profile picture.
With Elon Musk enthusiastic about cryptocurrencies, all of these initiatives could accelerate in the near future. Last June, before the acquisition, the entrepreneur would have expressed a desire to integrate a payment system directly into the social network so that Twitter users can send and receive cryptocurrencies.
Amused by DOGE’s price reaction, Elon Musk reacted with a tweet bearing his image:
But what is the DUKE?
To understand (or not) why Elon Musk loves this cryptocurrency so much, we must first go back to basics.
Dogecoin was officially launched on December 6, 2013 by Billy Markus. So in its genesis, the cryptocurrency market was not as accessible as it is now, its technical terms refer to a good number of them, giving way to “determined geeks”. This is why Billy Markus, a programmer by profession, took it into his head to create a cryptocurrency “for fun”: Dogecoin.
Intended to interest people who weren’t necessarily part of the ecosystem, the Shiba Inu cryptocurrency was initially just a joke. In fact, Dogecoin, unlike other cryptocurrencies, does not actually have a particular use. Even on a speculative level the Doge is not necessarily interesting as there is no limited number of pieces and therefore little rarity …
In spite of everything, “cryptojoke” has become top-notch reaching the top 10 of cryptocurrencies with a market capitalization of 7 billion euros … Thanks to its close-knit and noisy community, the price of DOGE has skyrocketed, starting with from 0, € 00026 to a high of € 0.69 in May 2021. Seeing its price explode, investors have poured into the dog-headed cryptocurrency.
Among these investors, a certain Elon Musk, who actively contributes to dogearmy – and perhaps even more, following the recent acquisition of Twitter …