Elon Musk, Dogecoin and Twitter: What Happened This Week?
In the nine past days, the media mentions of Elon Musk made Dogecoin rally on at least five different occasions. No one can really blame you if you felt a little lost in all the events that concerned the three this week. The ChangeHero team is here to explain it in one recap.
What’s up with Elon Musk and Twitter?
It all started on April 9 when the news reported that the Tesla CEO and PayPal founder purchased a 9.2% share of Twitter stock. The share was large enough to warrant Musk to join the Twitter board of directors.
However, joining the board would mean putting a 15% limit on the maximum stake in the company, to stave off a takeover. A few days later, Twitter CEO Parag Agrawal confirmed that Musk declined a seat.
Mike Cernovic, a political commentator, suspected that the move could be in preparation for a takeover. And his suspicions seem to be grounded in reality: per SEC filings, Musk has made an unsolicited offer to buy out Twitter for $43 billion:
How did Dogecoin Get Into This?
If you need a quick explainer why people associate Dogecoin with Elon Musk: he has been posting about it since 2019. Without doubt, he owns the world’s largest platform when it comes to DOGE.
Did Dogecoin traders react to the news about Twitter and everything Elon Musk past week? You bet it did!
First time: Cyber Rodeo event, drone show at the opening ceremony of a new Tesla factory. DOGE briefly surged 5% after the drones built a huge Doge, the cryptocurrency’s mascot.
Second time: April 19. The news about Musk purchasing a 9.2% Twitter share. Dogecoin jumps 7%.
Third time: Elon Musk tweets over the weekend about a possibility of paying for Twitter Blue subscription in DOGE. Dogecoin rises to $0.14.
Fourth time: Dogecoin Foundation presents the idea of RadioDOGE, a way to transact with Dogecoin without an Internet connection. Musk has had a hand in this, too: the alternative the developers suggest relies on his Starlink satellites.
Fifth time: Elon Musk makes a post revealing an offer to buy Twitter out. Dogecoin surges again by 5.8%.
At the time of publishing, the DOGE price is $0.1462, and due to all these surges it outperformed the rest of the crypto market this week.
How will it Impact DOGE? Our Opinion
What are the potential long-term consequences of this week’s events for Elon Musk, Dogecoin and Twitter? ChangeHero’s CMO Alexey weighs in:
Given that Elon Musk is known for his eccentric moves, this is probably another show to pump his portfolio. The stocks reacted positively to his Twitter stake purchase, but for some reason everyone ignored that by the time he made his statements about the decentralization reforms in Twitter he had already owned a stake in the company. After provoking a dump with the posts, he probably used the chance to buy some liquid assets for hundred thousands dollars and score on his own tweets.
As far as the influence on DOGE goes, there is no doubt the price will keep going up for some time. Today the Twitter board will be discussing his offer and yet another Metaverse with DOGE as a foundation for token economy.
It’s worth remembering that Dogecoin is extremely volatile and is heavily influenced by a person who likes pulling dumps when everybody else is expecting a pump to add to his fortune. Using Dogecoin as an investment vehicle is a bad idea, but as a speculative asset to earn with derivatives — why not, if you can.
Don’t forget that all altcoins exist to rob you of your Bitcoin ;)
Conclusion: We are in the very midst of this situation unfolding at the moment: the fate of the takeover is up in the air, and Dogecoin is being shaken up and down because of the association with Elon Musk. For certain, this is a story to follow closely, whether you would like to see how the corporate deals shake out in Twitter… or even if you simply hold DOGE.
Tune in for more crypto news and recaps in our blog on Medium. Follow ChangeHero on Twitter, Facebook, Reddit and Telegram for live crypto news and more content.
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