Elon Musk gives Dogecoin another big push today
- The billionaire CEO of Tesla and SpaceX – who this week revealed he owns 9.2% of Twitter – is a prolific Twitter user, who often moves markets with his tweets.
- He was named to Twitter’s board of directors on Tuesday and said he was looking forward to working with the board to provide “significant improvements to Twitter in the months to come.”
- 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 ( DOG -5.04% ) made big gains in trading today. The popular meme-themed cryptocurrency is up about 7.2% from the previous 24-hour period at 12:15 AM ET on Sunday.
Tesla CEO Elon Musk recently bought a 9.2% stake. Twitter making him the main shareholder of the company social media and led him to join the company’s board of directors soon thereafter. Musk commented yesterday saying she thinks users should be able to pay for the subscription service premium Twitter blue with Dogecoin, and his comments led to big wins for the symbolic price.
Immediate consequences for the DOGE course!
Dogecoin has been making gains lately despite bearish pressures that have impacted the broader crypto space. It is one of the very few top 100 tokens to be green in the past week and investors in the popular meme token can once again thanks Elon Musk Tesla for price gains.
Musk was one of the top cryptocurrency champions, and the influential tech personality claimed it was one of only three cryptocurrencies he owned, alongside Bitcoin And Ethereum .
“Everyone who signs up for Twitter Blue (ie, pays $ 3 per month) should get an authentication checkmark,” he tweeted.
“The price should probably be around $ 2 per month, but paid 12 months in advance and the account is unselected for 60 days (watch out for CC chargebacks) and suspended without refund if used for scam / spam”, he has declared.
“And no advertising. The power of companies to dictate policy increases dramatically if Twitter depends on advertising for money to survive, ”she added.
Musk also proposed that the price “should be commensurate with affordability and in local currency.”
” Perhaps also an option to pay in Doge? he suggested, referring to cryptocurrency.
On to Dogecoin
Aside from pure speculation and market dynamics, increased user adoption and payment use cases are one of the main factors that could help drive Dogecoin’s price up. However, there are still reasons to be skeptical that 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 Dogecoin’s price would rise even moderately from its price at some point, they probably wouldn’t have much reason to use it to buy. Twitter Blue. Alternatively, companies that accept Dogecoin and other volatile cryptocurrencies as payment are actually betting that the price will rise, rather than fall significantly.
The fact that Dogecoin has questionable utility as a currency doesn’t necessarily mean that its token price won’t significantly rise above current levels, but there is still a uncertainty if companies accepting it as payment will turn out to be a bullish catalyst. Investors should understand that the token remains a game to play. high risk and … with great reward!