Dogecoin (DOGE) Jumps 30% After Elon Musk Buys Twitter

Christian Encila

3 years ago

3 mins read

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

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

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

Late Monday, Twitter announced that it has reached a “definitive agreement to be bought by an entity entirely owned by Elon Musk for $54.20 per share in cash, in a transaction valued at about $44 billion.”

Once the transaction is finalized, the social media behemoth will revert to a status as a “privately held corporation.”

Recently, Musk had suggested several ways in which Twitter could be improved. (Image credit: Deadline)

In a statement on Monday, Musk said:

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”

The Rise Of Dogecoin

Musk has been a vocal proponent of digital currencies; he recently stated that he would not sell his Dogecoin and would also retain his Bitcoin and Ether holdings.

The rise of Dogecoin, a so-called memecoin — so-called because it is mostly based on an online joke rather than a substantial blockchain project — has been spurred by the Tesla CEO.

Musk has stirred the cryptocurrency markets’ nest in the past. In February 2021, the electric vehicle manufacturer said that it had purchased $1.5 billion in Bitcoin and intended to accept it as payment, triggering a spike in both the company’s stock 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 at $21.56 billion on the daily chart | Source: TradingView.com

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

The cryptocurrency’s value frequently varies in response to celebrity endorsements like Musk, Kiss’s Gene Simmons, and rapper Snoop Dogg.

Does It Have Real Value?

Dogecoin’s supply is unlimited, which means that as more tokens are issued, its price should theoretically drop. Mark Cuban, a billionaire entrepreneur and investor, has stated that bitcoin has “no intrinsic value.”

Jack Dorsey, Twitter’s former CEO and co-founder, left the company in November to focus on his payments startup, which rebranded to Block (from Square) to reflect greater goals in cryptocurrencies and blockchain technology.

Musk recently offered many methods to improve the microblogging site. Additionally, he urged that Dogecoin be used as a payment method on the social networking site.

Speculators have bought dogecoin because of Musk’s “obsession with the cryptocurrency,” and hence the potential for dogecoin to be given additional utility on one of the top social media networks if Elon is successful, according to Marcus Sotiriou, an analyst at digital asset broker GlobalBlock.

Featured image from CryptoHubK, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.