Dogecoin Soars 15% As Elon Musk’s Bid To Buy Twitter Reportedly Finalizes

April 25, 2022 2:41 pm Comments

Tesla CEO Elon Musk made news earlier in the month for his recent bid to acquire Twitter just after becoming a major shareholder of the company by acquiring a 9% stake.

Musk’s offer was a $43 billion offer to buy the company where he stated that the platform had enormous potential and that this acquisition would allow the company to reach that point.

There have been reports that Goldman Sachs would be Twitter’s advisor on evaluating Musk’s offer as the offer would price the value of each stock significantly greater than the current market price.

As a result of the rumors of the acquisition almost being finalized, Dogecoin has already soared by roughly 15% due to Elon Musk’s reputation of supporting the usage of the meme coin and the possibility that the coin could be integrated into the social media platform if this acquisition does happen.

Naturally, Twitter’s stock has also increased by roughly 3% since this news came out.

CryptoPotato reports:

According to more recent reports, the two sides will indeed shake hands, and it could become official as early as today – April 25.

Shortly after the news broke, Twitter’s stocks increased by 3% in pre-market trading.

Additionally, Tesla’s CEO has a significant influence on the cryptocurrency market (and especially on his favorite token – Dogecoin) with his comments and endeavors.

As such, it is no wonder that DOGE surged by over 15% since the news about the possible acquisition emerged.

Like most other digital assets, the first-ever memecoin started the day deep in red, trading at around $0.124, while currently, it is hovering at almost $0.15.

The entrepreneur often praises DOGE’s merits. At the end of 2021, he argued that the token is better suited for payments than bitcoin.

This is not the first time that the price of Dogecoin spiked due to Musk’s actions.

In the past, Tesla had announced that they would accept Dogecoin as a payment method which resulted in the coin’s price spiking over double digits in percentage change.

In terms of how Dogecoin might be integrated within Twitter, there is speculation that advertisers could be able to pay for ads using DOGE and be used as a way to pay for Twitter’s premium subscription services.

As the coin appears to continually gain more and more viable uses cases, its price action has so far surpassed all investor expectations and does not show any sign of slowing down.

CoinDesk shares:

“The speculation is that advertisers could be able to pay DOGE for ads and for other uses on Twitter,” Kryptomon Chief Marketing Officer Tomer Nuni explained to CoinDesk earlier this month.

“We have seen the same happening when Tesla revealed the ability to pay for its goods with DOGE. So the speculation could be around Musk’s businesses and stakeholdings starting to accept crypto, as Tesla does.”

Earlier this month, Musk teased DOGE payments on Twitter in a tweet, proposing dogecoin as one of the payment options for Twitter Blue, the site’s subscription service with premium features.

Tesla already accepts DOGE payments on its online merchandise store.

Musk has also previously lent support to dogecoin development and adoption, such as a May 2021 tweet that saw Musk state he was working with dogecoin developers to improve system efficiency.

Analysts expect the bullish rally for DOGE to continue once Musk’s acquisition of Twitter is actually confirmed.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.