The cryptocurrency, which owner Tesla is protecting, is benefiting from the announcement to buy Twitter amid expectations that it could play a major role in the social network.
After six months of negotiations, Elon Musk announced the acquisition of Twitter. Following the announcement of the completion of the deal, the Musk-linked cryptocurrency Dogecoin (DOGE) saw significant gains.
Based on the Shiba Inu dog meme, CoinGecko has seen the DOGE cryptocurrency rise by 30.8% over the past few weeks.
Amid rumors that talks between Elon Musk and Twitter were drawing to a close, investors were increasingly hopeful that Dogecoin could play an important role in the social network after the purchase.
This is because Elon Musk is a big supporter of Dogecoin. Musk, known as “Dogefather”, has already defended the meme-cryptocurrency several times on his own Twitter account.
His comments and actions often have an impact on the price of the meme cryptocurrency and other assets associated with it, known as the “Elon effect”. In January, Tesla began accepting Dogecoin when purchasing promotional products.
Even after being sued for $258 billion, more than his entire fortune, according to Forbes, Musk continued to support Dogecoin. The head of Tesla even quarreled with the creator of the cryptocurrency, Billy Markus, who abandoned the project and became one of its critics.
The owner of Tesla, and now Twitter, also said he sees Dogecoin’s potential as a currency. Given Twitter’s previous Web3 initiatives, many Dogecoin investors are optimistic that the meme-cryptocurrency could be significantly involved in Twitter, one of the largest social networks in the world, under Musk’s command.
Known as the new phase of the Internet, Web3 incorporates blockchain technology, cryptocurrencies, and NFTs into the decentralized Internet format we know today. Under the leadership of former Twitter CEO Jack Dorsey, the social network began to work with bitcoin payments through the Lightning network, for example, to donate tips. Dorsey left Twitter to work for Block, a company operating in the crypto sector.
In an announcement on his official Twitter account, Musk said he bought Twitter because “it’s important for the future of civilization to have a ‘common digital platform where a wide range of opinions can be discussed in a healthy manner, without resorting to violence’.”
The billionaire even changed his mind several times during the acquisition negotiations. A Delaware court decision forced him to close the deal.
“At its core, Twitter aims to be the most respected advertising platform in the world that strengthens your brand and grows your business,” Musk concluded in a statement.