Dogecoin’s price skyrocketed nearly 40 percent after Elon Musk, who famously promoted the joke cryptocurrency on his Twitter, struck a deal to buy the social media company for $44 billion in cash.
The so-called “meme coin” rose to 16.7 cents after the purchase was announced Monday afternoon, up from 12 cents in the morning. Musk previously floated the idea that users could use the coin to pay for Twitter’s premium service.
It’s worth about 15 cents as of Tuesday morning.
The cryptocurrency was created in 2013 as a “joke”. Their mascot is a Shiba Inu dog.
It was valued at less than a cent in early 2021, until the SpaceX founder and others began promoting it on social media, cheering it up and skyrocketing the price.
The billionaire’s mere mention of the coin has caused volatility. It crashed when he joked about it on Saturday Night Live last May. Things went up in December when he said Tesla would accept the coin as payment for goods.
“Joke” cryptocurrency Dogecoin surged nearly 40 percent after Elon Musk struck a deal to buy Twitter for $44 billion in cash
Musk has repeatedly promoted the cryptocurrency on his social media and TV appearances, coinciding with a surge in interest in the “meme coin” over the past year
Last May, Musk played a financial expert trying to explain crypto in SNL’s weekend update. He jokingly admitted that Dogecoin was a “rush,” sending the price down 22 percent
Dogecoin shares surged more than 15 percent after Musk tweeted that his electric car company Tesla would accept Dogecoin for goods
Musk and Twitter reached an agreement just before 3 p.m. Monday afternoon.
The Tesla magnate agreed to pay shareholders $54.20 in cash for each common share before the bombshell deal went through.
The move shifts control of the social media platform, populated by millions of users and global leaders, to the world’s richest person.
What is Dogecoin?
Dogecoin is a cryptocurrency created in 2013 as a “joke”.
Its mascot is a Shiba Inu dog, made famous by the “Dog” meme, which features photos of the dog overlaid with text in broken English.
It can be bought or sold on crypto exchanges like Coinbase or on trading apps like Robinhood and Webull.
A Dogecoin is worth 16 cents as of Tuesday morning. It was never worth more than 64 cents.
Creator Billy Markus said last year that he invented the coin for fun.
“I’m semi-distant, but it’s weird that something I did in a few hours is now part of internet culture,” he said. “It’s amusing to see Elon Musk talking about this. It feels silly, but there’s this tremendous lift behind it.”
Musk vowed to protect free speech on Twitter, “defeat the spam bots” and “authenticate all people” as he welcomed the acquisition.
He previously proposed a number of changes to the company’s fledgling premium service.
“Anyone who signs up for Twitter Blue (i.e. pays $3/month) should get an authentication tick,” he tweeted.
“Price should probably be ~$2/month but is prepaid 12 months and account will be unticked for 60 days (watch out for CC chargebacks) and banned with no refund if used for fraud/spam “, he said.
“And no ads. The power of corporations to dictate policy is greatly enhanced when Twitter depends on advertising money to survive,” he added.
‘Maybe even a possibility to pay in Doge?’
Some Twitter users are concerned about the company’s future in the hands of Musk, who is known for using the platform to post inflammatory messages and tease his followers, sometimes with the idea of using Dogecoin legitimately.
In January, he tweeted, “Tesla merch purchasable with Dogecoin.”
The stock rose more than 15 percent on the same day, reports CNBC.
Last May, Musk played a financial expert trying to explain crypto on SNL’s weekend update segment.
“They’re a kind of digital money, but instead of being controlled by a central government, they’re decentralized using blockchain technology,” he explained, letting out a nervous chuckle.
How difficult it is to explain, the host of the segment repeatedly asked him: “What is Dogecoin?”
“I keep telling you, it’s a cryptocurrency that you can exchange for traditional money.”
Dogecoin creator Billy Markus admitted last year that he created the coin as a joke and that it was “amusing” to see Elon Musk promoting it
“Oh, so it’s a rush,” said Michael Che finally.
“Yeah, it’s a rush,” Musk replied.
During the broadcast, the stock collapsed by 22 percent.
Dogecoin creator Billy Markus told Bloomberg last year that he invented the coin as a joke.
The coin traded heavily early last year, hitting a high of 64 cents in May, months after amateur investors managed to buoy shares of video game retailer GameStop.
Markus redeemed his Dogecoin and gave up his favorite project in 2015.
“I’m semi-distant, but it’s weird that something I did in a few hours is now part of internet culture,” he said. “It’s amusing to see Elon Musk talking about this. It feels silly, but there’s this tremendous lift behind it.”
Twitter stock is up more than 9 percent since April 19, when Musk made his bid to buy the company outright. Tesla shares fell about 0.7 percent over the same period.
Twitter stock is up more than 9 percent since April 19, when Musk made his bid to buy the company outright
A New York Times reporter says an unidentified Twitter employee told him they would throw up at the thought of working for Musk
Twitter employees are reportedly dismayed at the realization that Musk is now their boss.
“I feel like I’m going to throw up…I really don’t want to work for a company that Elon Musk owns,” an employee told a Reporter for the New York Times.
Some have expressed concern that Musk, a staunch anti-union agent reportedly worth $266 billion, would depress the stock price if he attempts to privatize the company, hitting employees who are partially paid in shares particularly hard.
The unidentified Twitter worker added, “I really don’t know what to do… oh my god my phone blew up… we have a meeting at 5pm about this… the CEO will be bringing everyone up on it.”
“I hate him, why would he even want that?
“I have a feeling he’s this stubborn little boy and he’s doing it to troll… he doesn’t know anything about our policies and what we’re doing… his statement about our algo was freaking crazy…
‘Shall we just let everyone run amok? … nobody knows.’
Previously, the 50-year-old tycoon demanded that his “worst critics” stay on the platform because “that’s what free speech means”.
Still, employees are concerned about the SpaceX founder’s plans for the company.
Twitter CEO Parag Agrawal (left) spoke to employees Monday to reassure them. Co-founder Jack Dorsey (right) holds a seat on the board but is expected to step down in May
Musk has been known to use Twitter to post inflammatory messages, much like former President Donald Trump.
Parag Agrawal, the CEO, said Monday it was up to Musk to decide whether Trump would be reinstated.
Trump said Monday he won’t rejoin the page if Musk allows him to — instead saying he’ll continue using his own TRUTH Social.
Some experts point to a difficult path for Twitter if Musk, who describes himself as a free speech absolutist, prevails.
“We expect advertisers will be less willing to spend money on Twitter if Elon Musk lifts content moderation to encourage freedom of expression,” said MoffettNathanson analyst Michael Nathanson.
The 16-year-old company, which has grown into one of the most influential online public spaces in the world with approximately 200 million users, reported $4.51 billion in advertising revenue for 2021, accounting for about 89% of its total revenue.
“The challenge (for Twitter) is to sustain and grow revenue as the controversy (Musk) hopes to give advertisers more free rein, which is often uncomfortable for advertisers,” said Susannah Streeter, analyst at Hargreaves Lansdown.