Tesla CEO Elon Musk recently acquired 9.2 percent of Twitter, making it its largest shareholder. When Elon Musk does something on Twitter, the crypto market is affected by it and acts in response. That’s why the crypto community is debating what Musk’s Twitter investment means for the crypto industry and where it will take Dogecoin (DOGE).
Musk’s investment news pushes Dogecoin price to the highest level in the last two months
Tesla CEO Elon Musk’s 9.2 percent purchase of shares on Twitter makes it the largest on the platform shareholders do. Following the news of the share purchase, the social media giant’s share value increased by 25 percent in pre-session transactions. Dogecoin, supported by Musk, has approached the highest levels of the last two months with this news. Binance Labs investment director Ken Li said that this investment by Musk could help advance the crypto initiatives of the platform and even lead to the integration of DOGE into the platform. continued:
Elon Musk’s investment in Twitter could help boost Twitter’s acceleration of crypto adoption. We’ll see if Twitter starts adopting Dogecoin. Elon has always been very open about the concept of a more decentralized and censorship-resistant social media platform, and this is something Blockchain and Web3 technology can help enable.
No official statement has been made yet about Musk’s plans for the company on the subject. However, given the history of both the Tesla CEO and the crypto and social media company, this event is expected to further Twitter’s discovery of more crypto and Blockchain-based features. Musk’s relationship with crypto is no secret. In February 2021, Tesla bought $1.5 billion worth of BTC. In March 2021, the famous businessman announced his plans to accept BTC as a means of payment for Tesla cars, boosting the markets. But the market crashed a few months after Musk announced that the firm was abandoning its plan, citing the environmental impact of Bitcoin mining’s energy use.
Crypto community awaits regulation for scam issue
As we have previously reported as Kriptokoin.com, Elon Musk’s crypto interest is not limited to Bitcoin only. Musk’s Dogecoin tweets were associated with the rise in the price of the memecoin, and the famous businessman was accused of price manipulation. The billionaire also explained that in 2021, DOGE is better than BTC when it comes to payments. In January 2022, Tesla began accepting DOGE as payment for its products. Despite this, official records show that Tesla held $2 billion in BTC in late 2021. Some of Tesla’s BTC holdings were also sold in March 2021 to test the liquidity of this volume. This move generated at least $128 million in realized earnings. Following Musk’s acquisition, Twitter’s shareholders include at least two crypto celebrities, including former Twitter CEO Jack Dorsey. It seems likely that this list will expand. Michael Saylor, known as a Bitcoin advocate, made a proposal to solve this problem and said:
“Crypto Twitter” has become a buzzword. Because, with its fast flow and rich interaction options, the platform once known as “microblogging” has become a discussion center for the crypto community. Therefore, it is only natural for wealthy opinion leaders to take a stake in this platform.
Twitter, blockchain like NFTs It also deals with based technologies. In January 2022, Twitter opened support for NFT avatars for subscribers of Twitter Blue, a paid $2.99 monthly subscription service. However, Musk responded negatively to this function. Apart from that, Twitter also supports tipping with cryptocurrency. In February 2022, the platform added Ether (ETH) to its tip payment options. The cryptocurrency community speculates that due to his tweet, Musk will first introduce a fix for the issue of crypto scammers sending spam on Twitter.
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