Dogecoin (DOGE) price jumps 30% after Elon Musk buys Twitter

Dogecoin (DOGE) soared nearly 30% on Tuesday after Elon Musk agreed to acquire Twitter Inc for $44 billion, according to multiple media outlets.

The Shiba Inu meme cryptocurrency, which has long been a centibillionaire favorite, was up 22.14% at $0.162 as of 01:10 AM IST on Tuesday, according to CoinMarketCap stats. . Twitter’s stock closed up 5.6% on the day.

This development comes minutes after Musk’s takeover of Twitter was made public.

Last Monday, Twitter announced that it had reached a “definitive agreement to be acquired by an entity wholly owned by Elon Musk for $54.20 per share in cash, in a transaction valued at approximately $44 billion.”

Once the transaction is finalized, the social media juggernaut will resume its “private company” status.

In a statement Monday, Musk said:

“Free speech is the foundation of a functioning democracy, and Twitter is the digital public square where issues vital to the future of humanity are debated. »

The Rise of Dogecoin

Musk is a strong supporter of digital currencies; he recently stated that he will not sell his Dogecoin and will also keep his Bitcoin and Ether holdings.

The rise of Dogecoin, a memecoin — so called because it’s mostly based on an online joke rather than a substantial blockchain project — was spurred on by Tesla’s CEO.

Musk has already stirred the nest of cryptocurrency markets in the past. In February 2021, the electric vehicle maker said it had purchased $1.5 billion in bitcoins and intended to accept them as payment, which sparked a surge in both the action of the company and the currency.

However, Musk reversed his position the following May, precipitating a decline in the value of bitcoin and other cryptocurrencies.

DOGE total market cap a| Source: TradingView. Ceci pourrez vous intéresser : Analyse du prix de l'Ethereum : ETH face à une résistance critique, rupture et cours à 3000 $ imminents ?.com

In May of the same year, his posts catapulted dogecoin to an all-time high of 67 cents, according to Coin Metrics.

The value of crypto-money fluctuates frequently based on celebrity endorsements like Musk, Gene Simmons of Kiss, and rapper Snoop Dogg.

Does it have real value?

The supply of Dogecoin is unlimited, which means that as more tokens are issued, its price should theoretically fall. Billionaire entrepreneur and investor Mark Cuban said bitcoin has “no intrinsic value.”

Jack Dorsey, the former CEO and co-founder of Twitter, left the company in November to focus on his payments startup, which changed its name to Block (from Square) to reflect bigger goals in crypto -currencies and blockchain technology.

Musk recently came up with many methods to improve the microblogging site. Moreover, he insisted that Dogecoin be used as a means of payment on the social network.

Speculators bought dogecoin because of ‘Musk’s obsession with cryptocurrency’, and therefore the possibility of giving dogecoin additional utility on one of the major social media networks if Elon is successful, according to Marcus Sotiriou, an analyst at digital asset broker GlobalBlock.

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