Dogecoin doubles in a week thanks to Musk Twitter takeover

The meme-inspired cryptocurrency DOGE has surged to five-month high

Twitter logo with Elon Musk’s profile in the background                                 
The price of Dogecoin has doubled in a week following Elon Musk’s $44bn acquisition of Twitter – Photo: Shutterstock
                                

Dogecoin has doubled in price in the past week after one of its most prominent supporters, Elon Musk, completed his takeover of the social media platform Twitter. 

The meme-inspired cryptocurrency was trading at $0.1235 as of Monday 31 October at 10:30 (UTC), having stood at $0.0602 seven days earlier, representing a 105% increase.

DOGE’s market capitalisation reached $20bn (£17.3bn) for the first time since May over the weekend, before falling back to $16.3bn. 

The CEO of SpaceX and Tesla completed his $44bn acquisition of Twitter last week. He had attempted to back out of the deal, which was agreed before a pronounced sell-off in the technology sector, arguing that Twitter had misrepresented the number of robot accounts on the platform.

However, after a number of initial court decisions went in Twitter’s favour, Musk opted to finish the purchase. Taking the reins, the South Africa-born billionaire posted a video of him entering Twitter’s headquarters while holding a sink and with the caption: “Let that sink in!”

In a statement to advertisers on Twitter, Musk said: “The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence.” 

Musk jokes with Dogecoin co-creator

The correlation between Musk and Dogecoin dates back to the crypto bull market of 2020 and 2021, during which the billionaire took to Twitter to jokingly support the meme-inspired cryptocurrency. 

After reaching an all-time high of $0.7376 in May 2021 in part thanks to Musk’s semi-ironic evangelisation, Dogecoin slumped, losing $68.5bn in value in the next 12 months. Even after the crash, Musk said that Tesla would accept DOGE as a means of payment for merchandise. 

Musk is reported to be introducing a $20 monthly charge for blue-check verification on the platform. Responding to the reports, Dogecoin co-creator Billy Markus joked the new blue verification’s feature top tier will include “a crown icon and the power to ban any user”. 

In response, Musk joked: “Oh no, all our diabolical plans have been revealed!” 

Twitter’s stock, which will be delisted from the New York Stock Exchange on 8 November, closed at $53.70 at the end of trading on Thursday last week.

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