Elon Musk gives Dogecoin another big boost today
- The billionaire CEO of Tesla and SpaceX – who this week revealed he owns 9.2% of Twitter – is a prolific Twitter user, often moving markets with his tweets.
- He was named to Twitter’s board on Tuesday and said he looked forward to working with the board to deliver “meaningful improvements to Twitter in the months ahead.”
- Launched in June last year, Twitter Blue is the social media giant’s first subscription service for those willing to pay for exclusive access to special features.
Summary to understand what happened
Dogecoin ( DOGE -5.04% ) made big gains in trading today. The popular meme-themed cryptocurrency was up about 7.2% over the previous 24-hour period at 12:15 a.m. ET Sunday.
Tesla CEO Elon Musk, recently purchased a 9.2% stake in Twitter making him the main shareholder of the company of social media and led him to join the company’s board of directors soon after. Yesterday Musk made comments saying he thinks users should be able to pay for the subscription service Premium Twitter Blue with Dogecoin, and his comments resulted in big wins for the token price.
Immediate consequences for the DOGE course!
Dogecoin has been making gains lately despite bearish pressures impacting the broader crypto space. It is one of the very few top 100 tokens to be in the green over the past week, and investors in the popular meme token can once again thank Elon Musk of Tesla for the price gains.
Musk has been one of the most prominent cryptocurrency champions, and the influential tech personality said it was one of only three cryptocurrencies he owned – along with Bitcoin and Ethereum .
“Everyone who signs up for Twitter Blue (i.e. pays $3/month) should get an authentication checkmark,” he tweeted.
“The price should probably be around $2/month, but paid 12 months in advance and the account is unchecked for 60 days (watch for CC chargebacks) and suspended without refund if used for scam /spam,” he said.
“And no advertising. The power of corporations to dictate policy is greatly increased if Twitter depends on advertising money to survive,” he added.
Musk also proposed that the price “should be commensurate with affordability and in local currency.”
” Perhaps even an option to pay in Doge? he suggested, referring to cryptocurrency.
Next for Dogecoin
Apart from pure speculation and market dynamics, increased user adoption and payment use cases are one of the major factors that could help drive up the price of Dogecoin. However, there are still reasons to be skeptical about whether Dogecoin and other cryptocurrencies really make sense to use as coins . Volatility in the crypto space has opened the door to explosive gains and made some investors very wealthy, but the tendency for token prices to fluctuate wildly poses problems.
For example, if a user thought that the price of Dogecoin was going to increase even moderately from its price at some point in time, he probably wouldn’t have much reason to use it to buy. Blue Twitter. Alternatively, companies that accept Dogecoin and other volatile cryptocurrencies as payment are effectively betting that the price will rise, rather than fall dramatically.
The fact that Dogecoin has questionable utility as a currency does not necessarily mean that its token price will not rise significantly above current levels, but there is still a uncertainty as to whether companies accepting it as payment will turn out to be a bullish catalyst. Investors should understand that the token remains a game to be played. high risk and… with high reward!