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Elon Musk has finally agreed to buy Twitter and the decision has been nothing short of excellent for Dogecoin’s prospects.
After a month-long battle between Twitter and Elon Musk, the former has finally managed to wrangle the owner of Tesla into honouring his contract. In response, his favourite crypto, Dogecoin, has surged by 94% in the past week.
This coin has a level of correlation with Elon’s twitter posts, going up or down every time Elon Musk makes a tweet.
In fact, anytime Elon comments on dogecoin, the coin experiences a major movement.
A notable instance was when Elon appeared on Saturday Night Live and spoke of Dogecoin in a positive sense.
The comments made by Elon pushed Dogecoin to a high of 73 cents, an all time peak.
Clearly, the spike was artificial as the coin soon dipped by 35% after the Saturday Night Live appearance.
In the past week, Dogecoin has doubled in value, going from $8.1 billion to $15.9 billion.
Surpassing coins like Cardano and Solana, Dogecoin is also the third most traded token on Coinbase.
Does Dogecoin really have value as a crypto-token?
Dogecoin is experiencing a positive boom but as a coin, it holds intrinsically low value but has a huge community behind, especially since Elon Musk is talking about it.
The coin originally was made as a joke, mocking the rise of crypto.
As such, it has not any big development team behind nor has there been any updates on further developments on its blockchain or any new code written.
With 30 transactions per second it is a fairly slow blockchain.
Elon Musk supports the coin on Twitter through content forms like memes which are mostly used for satire and comedy.
In the recently released court documents on Twitter Elon Musk said: My Plan B is a Blockchain Version of Twitter, where the ‘tweets’ are embedded in the transaction as comments. So you’d have to pay maybe 0.1 Doge per comment or repost of that comment.
Hence the recent speculation and growth of Doge.
Hopefully, investors will rely on professional advice when evaluating this coin since it has no relevant value as of now.
This article is sourced from the following links:
Dogecoin Leaps 94% in Weekly Gains Following Elon Musk’s Twitter Acquisition - Decrypt
Dogecoin surges 35% as Elon Musk's Twitter deal approaches close (cnbc.com)
Dogecoin surges on Elon Musk’s Twitter deal | Technology News,The Indian Express