As news filtered in on Monday that Elon Musk has acquired substantial stakes in the social media platform Twitter, the price of Dogecoin spiked in tandem with the new development.
According to available data, the price of the leading meme token jumped from $0.143 to above $0.156 a couple of minutes after the announcement of Musk’s stake in Twitter which shows that he holds more than 83.5 million shares with the social media behemoth valued at above $2.89 billion at the current market valuation.
At the same time, the value of Twitter shares has also surged by 25% following the news. Meanwhile, Musk previously criticized Twitter for its intolerance of dissenting opinions and low user protection on the platform.
Musk’s Concerns about Twitter
On March 26, the billionaire made a post on his Twitter handle asking his followers whether an alternative platform is needed in place of Twitter because he feels that Twitter has been censoring posts on its network.
Musk was considering another different platform to Twitter with an algorithm capable of allowing free speech without curtailing individual opinion.
Additionally, Musk also takes a swipe at the team at Twitter for the resources spent in trying to integrate NFTs instead of upgrading the platform to safeguard users from crypto spammers that are frequent on Twitter.
Spamming has been one of the oft-talk about the topic by influential personalities, with Musk and Dogecoin Co-founder Billy Markus critical of Twitter’s inability to protect users from spam on its platform. It is now seen how Tesla’s boss can help curtail the issues mentioned above after his latest acquisition as a significant shareholder.
Influence on DOGE
The billionaire has been one of the most ardent supporters of Dogecoin, going by his previous actions concerning the adoption of the meme token as a utility.
As a crypto enthusiast, his electric car company, Tesla, began accepting Dogecoin for its products last year but later backed out, citing environmental concerns in Bitcoin mining.
The company later began accepting Dogecoin as payment for some of its range of products in January, which has sent the value of DOGE up by 11%.
Musk is considered the most active of all crypto supporters, and if he has his way, as Mati Greenspan, CEO of Quantum Economics, noted, he will do whatever he can to push the value of the DOGE up.
Unlike fiat, Dogecoin is driven by hype, and the network gains widespread attention and becomes stronger with consistent advertising. Fundamentally speaking, speculation increases the demand, which ultimately leads to a price increase.
The Tesla boss has publicly supported the development and adoption of DOGE as a utility. In May last year, his tweet about working closely with developers at the Dogecoin network sent the price of Dogecoin up by 22%.
He also advocates for a reduction in the fees for Dogecoin to make it more competitive with other cryptos. The extent to which Musk can go to promote the DOGE is known only to him.