Dogecoin (DOGE) transactions increased after Elon Musk took over Twitter. 5 crypto veterans discuss the future of the meme coin and why its potential real-world uses could translate into future gains.
Elon Musk and his dog DOGE
Monday afternoon, Elon Musk signed an agreement to buy Twitter for $54.20 per share, valuing the social media company at approximately $44 billion. Shares of Twitter rose understandably more than 6% after the deal was announced, with Dogecoin not surprisingly so too.
The price of Elon Musk’s favorite cryptocurrency rose from $0.12 to $0.17 on the news, making it the 10th largest cryptocurrency by market cap. However, he later regressed and emerged from the top ten.
Many think Elon Musk’s acquisition of Twitter will turn the cryptocurrency, which was originally created as a joke, into a legitimate contender in the crypto world, with some real use cases. .
Musk, for example, has accepted Dogecoin payments for Tesla products in the past, and recently Twitter has hinted that he will accept DOGE for premium services. Crypto experts are debating Elon Musk’s acquisition of Twitter, what it means for DOGE and whether it will have significant ramifications for the crypto economy. We have prepared the opinions of experts for Kriptokoin.com readers.
Why can Dogecoin rise?
Elon Musk and Dogecoin’s fates are tightly intertwined, so it came as no surprise that the price of DOGE began to soar when Musk made an offer to buy Twitter. Since then, the crypto community has been buzzing about Dogecoin.
Dogecoin rose on news that Elon Musk’s bid for Twitter was successful and Musk will continue to publicly support DOGE, according to the Bitfinex trade team, who explained that their positive outlook for Dogecoin is largely based on continued promotion from Musk. supported by faith. The team considers Musk’s purchase of Twitter a bullish sign, as he’s dedicated to being both a social media phenomenon and a Bitcoin enthusiast.
Many Dogecoin believers think Musk’s acquisition goes beyond cheerleading and meme money will be incorporated into the social media platform. There are several ways this can occur; For example, Musk might start accepting Dogecoin as payment for Twitter Blue, a premium service recently trialled by Twitter, or expand the Bitcoin Tipjar to accept Dogecoin. Tomer Nuni, Kryptomon’s CMO, said:
Musk’s takeover of Twitter will likely bring more credibility to DOGE from crypto enthusiasts and the general public alike. It aims to use one of the world’s largest social networks and the most popular among the international crypto community as an acceptable payment method. We’ll probably see it reach the top 5 or even the top 3 cryptocurrencies by the end of the year, bringing it closer to Ethereum and Bitcoin.
Light Node Media head Alexis Johnson, as for the rest of the fast-growing crypto industry, said Musk’s acquisition of Twitter has led to the integration of not only Dogecoin but many other cryptocurrencies. He says he opened the door. According to Alexis Johnson, Elon’s acquisition of Twitter will be beneficial for the crypto market as a whole. Johnson explains his views as follows:
He continues to express his stance and overall support for the cryptocurrency industry with great enthusiasm. So I can see Twitter trying to add features and integrations that will benefit crypto native users and introduce non-crypto users to crypto. Therefore, I predict that these features and integrations will positively affect all cryptocurrencies, including Dogecoin.
There are also opponents to Dogecoin (DOGE)
But not everyone in the crypto space is so optimistic about buying. Mahbod Moghadam, a crypto whale and founder of Dogecoin platform Helladoge, says Musk has yet to embrace Web3 ideals and this will eventually hurt the Dogecoin brand. According to
Mahbod Moghadam, emulating Bitcoin Tipjar or even accepting Dogecoin payments is not enough for widespread adoption and does not reflect Web3 values. Moghadam notes that users use 100% of the value of social media companies, so if Elon wanted to make a difference, Twitter would pay a data dividend to its unpaid workforce.
Many crypto veterans still argue that Dogecoin is not a serious project, regardless of the Twitter purchase. Lee Reiners, executive director of Duke University’s Center for Global Financial Markets, said:
Elon Musk said what everyone already knew when he called Dogecoin an ‘impulse’ on Saturday Night Live last year. Buying Twitter doesn’t change this simple fact.
It’s worth noting that Elon Musk himself encouraged caution when investing in crypto and tweeted, ‘As I said before, don’t bet the farm on crypto’. Moreover, Musk has a track record when it comes to crypto payments: In March 2021, Elon Musk announced that Tesla would only accept Bitcoin payments two months later to publicly reverse that decision.
Even Dogecoin co-founder Billy Markus disagrees that Elon Musk will benefit crypto. In a Twitter post, he said he did not know how the acquisition would affect the price of Dogecoin and would not be on the Twitter board when it was proposed.
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