Elon Musk finally bought the social platform Twitter. This issue leads to 35% growth of Dogecoin became. Investors are once again interested in Dodge.
Dogecoin is a type of digital currency meme coin (meme coin) that was launched in 2013 using the image of a viral dog. Twitter bought by Elon Musk 35% growth of Dogecoin brought along
Read more: Dogecoin price prediction in 2022
35% growth of Dogecoin
Dogecoin price It is always directly related to the activities of Elon Musk, CEO of Tesla. after that The head of SpaceX Changed his Twitter bio to “Chief Of Twit” on Wednesday, Dogecoin surged 10% in an explosive 24-hour period.
The connection between the price of Dogecoin and the actions of Elon Musk It was proven in the past. For example, when Musk first came up with the idea of adding Dogecoin as a payment method for Twitter Blue subscription service brought up, this popular meme coin faced a significant price growth.
Elon Musk announced in June that he had given up trying to buy Twitter. This caused the price of Dogecoin to fall. After much controversy between Elon Musk and the heads of Twitter, it seems that the final agreement has been reached.
Twitter digital currency wallet
Among other reasons 35% growth of Dogecoin You can refer to the rumors about the possibility of initial release Twitter crypto wallet Cited.
Jane Manchun Wong, a popular tech blogger known for her accurate predictions, tweeted on Monday that Twitter is working on a prototype of its cryptocurrency wallet. This wallet will be able to deposit and withdraw cryptocurrencies. Speaking to CNBC, Wang said:
We don’t yet know which cryptocurrencies or which networks are supported by Twitter Crypto Wallet.
Twitter has so far hinted at the launch Digital currency wallet It hasn’t, but the social media company unveiled a tipping feature on its platform last year. Users can support content producers through this feature and tip them with BTC. In February, Twitter added Ethereum to the list of tokens available for tipping.
Read more: Musk’s meaningful entry into Twitter’s headquarters with a bathroom sink! / Elon Musk bought Twitter?
Celebrity endorsement of Dogecoin
It is still unclear when and how Dogecoin managed to capture Elon Musk’s heart. The billionaire CEO of Tesla and SpaceX has talked about Dogecoin many times in recent years. Elon Musk’s tweets often cause Dramatic growth in the price of Dogecoin has been Many investors are investing in Dogecoin based on his tweets.
Asheesh Birla, CEO of Ripple believes that Elon Musk’s behavior is just like cult leaders. Elon Musk is not the only person supporting Dogecoin. Many of the world’s top celebrities, including Mark Cuban, Snoop Dogg, and bassist Gene Simmons, have all publicly shown their support for Dogecoin in the past.
35% growth of Dogecoin It had happened in the past. The popular meme coin of the digital currency market these days in 2021 experienced a significant growth after Musk’s appearance on Saturday Night Live. This growth was such that even the Robin Hood Exchange was temporarily out of business.
Read more: Musk’s meaningful entry into Twitter’s headquarters with a bathroom sink! / Elon Musk bought Twitter?
What is the reason for the price growth of Dogecoin?
According to many analysts, the only factor behind the price records of Dogecoin is not the support of people like Elon Musk. It is possible that larger organizations and communities are behind this trending coin meme.
“Dogcoin looks like a big FU for the system,” said Avi Felman, Head of Trading at BlockTower Capital. This meme coin may also have intrinsic value; But my reason for buying Dogecoin is completely instinctive.”
According to Felman, the reason Dogecoin price growth in 2021 It was Elon Musk’s emotional behavior. Musk is basically pushing the message that Dogecoin is a valuable cryptocurrency. People love these stories. They love stories and humor. Dogecoin has captured the minds and imaginations of retail investors.
In 2013, some software engineers like Billy Markus and Jackson Palmer launched Dogecoin to mock Bitcoin and many other cryptocurrencies that have a grand plan to take over the world. .
Whether or not Dogecoin has intrinsic value is debatable. There are currently very few practical use cases for the Doge token. Last year, many companies started accepting Dogecoin as a payment method, but this memecoin has by no means reached the level of acceptance necessary for global use.
“Everybody’s using big marketing gimmicks these days,” BlockTower Capital general partner Mike Bucella told CNBC. Unlike cryptocurrencies like Ethereum, which allow developers to run their own apps on their own platform or do things like deposit loans, there’s nothing useful to do with Dogecoin.
Dogecoin is not a suitable and reliable source for storing users’ wealth. Investors only invest in currencies that they have long-term faith in. There must be a basic and logical reason behind every investment. In this regard, Birla added:
If you look at the structure of the Dogecoin protocol, you will notice that no one has added any new functionality or code to this cryptocurrency for years. There is no strong development team behind Dogecoin.
Given the limitations, it seems that the 35% growth of Dogecoin and the high volatility of this memecoin is purely emotional and based on speculation. In general, Dogecoin has value because others believe it has value. Dogecoin will continue to grow when there are people who will buy this memecoin at higher prices.
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Source: cnbc