Dogecoin price explodes after Twitter deal: What is Elon Musk doing?

After a long wait and fear, it is clear that Elon Musk is now buying Twitter. The cryptocurrency Dogecoin also benefits enormously from the new deal – the price rose by 35 percent within a very short time. But: What does Tesla boss Elon Musk intend to do with the cryptocurrency?

Elon Musk buys Twitter (really)

Elon Musk is buying Twitter – that was already announced in spring 2022. A few months later it looked like the deal was off the table. After all, both contracting parties sued each other. And now the happy ending.

At 5:49 a.m. on October 28, 2022, Elon Musk announced on Twitter: “The bird is free.” Or to put it another way: The Tesla boss is now buying the short message service for 44 billion US dollars and, as the first official act, is dismissing the entire management floor.

Dogecoin price explodes after Twitter takeover – 3.0 billion euros in trading volume

But not only Elon Musk and his die-hard fans can be happy. Investors in the cryptocurrency Dogecoin are also seeing a not inconsiderable jump in price.

The fun currency, which is pronounced with a soft “D” and has a Shiba Inu as its identifier, is very popular with Tesla and soon Twitter boss Elon Musk. Accordingly, the Dogecoin course benefits from the latest developments.

In a weekly comparison, the Dogecoin course has been up since October 20, 2022 by more than 45 percent. The trading volume of the cryptocurrency platform Coinbase has increased by more than 33 percent to 3.0 (!) billion euros in the last 24 hours.

Nevertheless, the fun currency has still lost 72 percent in value year-on-year. With the current price of EUR 0.08, the all-time high of EUR 0.74 is still very far away – a new high is also unlikely for the time being.

What is Elon Musk’s plan for Dogecoin?

However, investors’ hopes are not unfounded. Finally, Elon Musk enables his followers to pay for their purchases with Dogecoin in the Tesla merch shop.

If you then consider Elon Musk’s promise to significantly increase Twitter’s income, the thought is not far off that the fun currency on Twitter will have a greater purpose in the future.

As early as May 2022, the current Twitter owner had expressed the desire to introduce Dogecoin as a means of payment on Twitter. In combination with the already existing donation option for Twitter users, a deeper integration only seems logical.

Will Dogecoin become a valuable cryptocurrency?

Such speculation is particularly interesting with regard to cryptocurrencies. After all, fun currencies such as the Dogecoin in particular often have no areas of application. They are driven by hypes and statements and in fact represent nothing more than gambling.

However, as soon as a cryptocurrency receives a meaningful countervalue – for example as an accepted means of payment on an established platform – there is definitely an option for long-term value growth. Unless – Elon Musk decides differently again.

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