News equipment Crypto: why is dogecoin (DOGE) on fire after Elon Musk’s takeover of Twitter?
While the CEO of Tesla has just offered the social network Twitter for the modest sum of 44 billion dollars, the DOGE crypto courses seem to appreciate the news… Indeed, since the purchase of the blue bird by Elon Musk, the most famous dog. – “Meme” with the title “coin” saw a dramatic price increase in the span of a few days. Here’s why the rise of the Dogecoin cryptocurrency is extremely tied to Musk’s takeover of Twitter.
Dogecoin (DOGE): Elon Musk’s favorite coin
Between Elon Musk and Dogecoin, it’s a romance that doesn’t date from yesterday… It all started with a tweet from Elon Musk in April 2019:
“Dogecoin might be my favorite cryptocurrency. Is very beautiful.”
Indeed, over the past few years, Elon Musk has had fun setting up Doge’s courses at his whim. These various interventions on Twitter generated a strong enthusiasm for the cryptocurrency, which had the effect of making Elon Musk the guru of Dogecoin.
The process is simple: the billionaire tweets regularly on DOGE in order to see his price rise instantly. A not insignificant practice as Dogecoin is one of his three crypto investments alongside Bitcoin and Ethereum.
Despite accusations of price manipulation, Elon Musk never stopped supporting Dogecoin, to the point where he integrated the use of the DOGE crypto into his various companies.
Thus, despite the decline of cryptocurrencies, Elon Musk allowed DOGE holders to use crypto as a means of payment in the online trading stores of his companies: SpaceX and Tesla.
Why Dogecoin (DOGE) Price Explodes After Twitter Takeover
The news of the American billionaire’s takeover of Twitter has excited DOGE fans who have invested heavily in the crypto. Since October 25, the cryptocurrency has posted a monumental rally while the market is not in its best shape. Indeed, the price of DOGE has seen its price multiply by 3, going from €0.05 to €0.15.
As previously explained, Elon Musk has been a consistent supporter of cryptocurrency through various initiatives. Thus, many assume that the new CEO of Twitter may have the ambition to integrate the use of DOGE through the functionalities in the social network.
These Doge Army proponents hope to see mass adoption by Twitter users if that happens, meaning the price could potentially rise. This is why many investors are positioned in the time frame of several days, thus driving the price up.
However, for now, these are only speculative assumptions, based on evocative elements…
Long before Elon Musk’s takeover, Twitter never hid its attraction to web 3 and blockchain technologies. Thus, for more than a year, the social network has gradually integrated features that affect cryptos or even NFTs.
For example, Twitter offers Bitcoin Tipping, a feature that allows you to use your Bitcoins to make donations to content creators on the social network. Also, with the premium Twitter Blue subscription, it is possible to display their NFT and their properties in their profile picture.
Elon Musk being a crypto-enthusiast, all these initiatives may accelerate in the near future. Last June, before the acquisition, the businessman reportedly mentioned his desire to integrate a payment system directly into the social network so that Twitter users could send and receive cryptocurrencies.
Pleased by the reaction to DOGE’s price, Elon Musk responded with a tweet bearing his image:
But what is DOGE?
To understand (or not) why Elon Musk loves this cryptocurrency so much, we must first go back to the origins.
Dogecoin was officially launched on December 6, 2013 by Billy Markus. So, in the beginning, the crypto market was not as accessible as it is now, its technical terms pushed a good number of them, giving way to “settled agreements”. That’s why Billy Markus, a programmer by profession, took it upon himself to create a cryptocurrency “for fun”: Dogecoin.
Intended to interest people who weren’t necessarily part of the ecosystem, the Shiba Inu crypto was originally just a joke. Indeed, Dogecoin, unlike other cryptocurrencies, does not have any particular use. Even on a speculative level the Doge isn’t necessarily interesting as it doesn’t have a limited number of parts and therefore a bit of a rarity…
Despite everything, “cryptojoke” became the first step to reach the top 10 cryptocurrencies with a market capitalization of 7 billion euros… Thanks to its tight and noisy community, the price of DOGE increased, starting from €0.00026 to the May 2021 high of €0.69. Seeing its price explode, investors flocked to the crypto headlong.
Among these investors, a certain Elon Musk, who actively contributes to the army of the bay – and perhaps even more, after the recent acquisition of Twitter…