Home » Dogecoin surges 35% as Elon Musk’s Twitter deal approaches close

Dogecoin surges 35% as Elon Musk’s Twitter deal approaches close

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Tesla CEO Elon Musk pictured in Austin, Texas on April 7, 2022. Electric vehicle companies are also making inroads into battery storage.

Suzanne Cordeiro | AFP | Getty Images

dogecoina cryptocurrency branded after a dog meme that went viral in 2013, is up 35% since Monday following a deal to take over Elon Musk. twitter We are nearing the end.

Token prices are often Tesla Doge has surged 10% in the past 24 hours after the SpaceX chief changed his Twitter bio to “Chief of Twitter” on Wednesday. The price skyrocketed in April when the idea struck. Add Dogecoin as a payment method Twitter’s subscription service “Blue”. June also saw a selloff as Musk tried to back out of his purchases.

However, after a months-long tussle between Musk and Twitter over the sale, all signs point to Musk closing the deal before the 5 p.m. deadline on Friday. The alternative is for Mr. Musk to stand trial in a Delaware state court.

The soaring price of Dogecoin (pronounced “Dojecoin” with a soft “g” sound) is also consistent with rumors that Twitter is prototyping its own cryptocurrency wallet.

Jane Man Chun Wong A popular tech blogger known for his space visionary, tweeted on monday Twitter said it was “working on a ‘wallet prototype’ that supports ‘cryptocurrency deposits and withdrawals’.”

We don’t yet know what types of cryptocurrencies will be supported and what networks will be supported,” Wong told CNBC.

Twitter has not announced a cryptocurrency wallet product, but last year the social media company rolled out a tipping feature that allows users to send bitcoin to creators through the platform. In February, Twitter added Ether to its hints feature.

Host Elon Musk in monologue on Saturday, May 8, 2021.

Will Heath | NBCUniversal

Elon Musk effect

It is not entirely clear when or why Dogecoin captured the heart of Elon Musk. Billionaire Tesla and SpaceX CEO over the years Talk about tokens.

Musk’s tweet, which includes an oblique reference to dogecoin, said: often send that is new record highThese posts also helped generate interest from retail investors.

“There is one person who is like a cult leader,” Ripple general manager Asheesh Birla said.

But Musk isn’t the only celebrity endorser of animal-branded tokens. Dallas Mavericks owner Mark CubanSnoop Dogg, and Kiss bassist Gene Simmons have publicly rallied in support of Dogecoin in the past. slim jim got Participate in the action at some point.

Doge price hike in 2021, Pointed out by one analyst Until Musk’s “Saturday Night Live” appearance on May 8, 2021, Robinhood trading app crashes.

But it wasn’t just celebrity endorsements that led to Dogecoin’s record rally. There was also a lasting feeling of “sticking” to the establishment.

Avi Felman, Head of Transactions at BlockTower Capital, said: “It’s like, ‘Oh, this is worth it too. And I’m just going to buy it, because I’m going to buy it.'”

“Elon is basically pushing the message of ‘why Dogecoin has no value,’” Ferman said of Doge’s 2021 price hike. “People love these stories. They love these stories. They love these jokes. And Dogecoin has captured the hearts and imaginations of all retail investors.”

“We have an enthusiastic online community,” Birla said of the governor’s evangelist fan base.

In 2013, software engineers Billy Marcus and Jackson Palmer launched a satirical cryptocurrency as a way to make fun of Bitcoin and the many other cryptocurrencies that boast grand plans for world domination.

“We have Twitter and Reddit and they are coming together and figuring out how to get Dogecoin out,” Birla said.

Dogecoin Rating

Whether or not Dogecoin has value is debatable.

There are few use cases for tokens at this time.but more merchants has begun accept dogecoin As a payment method last year, it’s nowhere near the level of adoption needed to be used as a substitute for real currency.

BlockTower Capital general partner Mike Bucella previously told CNBC:

Unlike competing cryptocurrencies such as etherallows programmers to build applications on the platform to lend and borrow money, but there’s not much you can do with Dogecoin.

dogecoin Not a reliable repository of wealth Given that this usually requires some long-term trust in the coin and the blockchain it’s built on.

“Looking at the Dogecoin protocol itself, I don’t even know if anyone has added new features or code in the last few years,” Birla said. “Dogecoin doesn’t really have a development team.”

Considering these limitations, Dogecoin’s rise appears to be purely speculative. Dogecoin has value because other people believe it has value.

Disclosure: “Saturday Night Live” is a television program of NBCUniversal, the parent company of CNBC. CNBC owns off-network his cable exclusive rights to “Shark Tank,” which features Mark Cuban as a panelist.

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