The price of dogecoin jumped more than 30% after the announcement of Elon Musk’s takeover of Twitter.
The meme-inspired cryptocurrency hit above $0.16 on Tuesday morning, which saw it return to the list of the top 10 most valuable cryptocurrencies.
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Mr. Musk, who is a vocal crypto advocate and dogecoin investor, said he would make cracking down on fraudulent cryptocurrency accounts on Twitter a priority as the new owner.
Other potential changes to the social media platform could include methods to tip other users in cryptocurrency, or the use of cryptographic micropayments to verify that a user is a real person and not spam. bot.
The overall cryptocurrency market rose more modestly by around 5% following the announcement of Mr. Musk’s takeover of Twitter, bucking a downward trend that had seen its market capitalization fall from over $2.1 trillion to under $1.8 trillion since early April.
The sudden rise in Dogecoin’s price follows a trend in recent years for the cryptocurrency to “joke” to react to Mr. Musk’s comments or actions.
Dogecoin founder Billy Markus reacted to the price hike by tweeting, “If only Elon bought Twitter everyday.”
In February 2021, Mr. Musk offered to buy back so-called dogecoin whales to turn them into “internet currency”, after he had already bought some of the cryptocurrency for his toddler son “so he could to be a toddler hodler”.
He tweeted at the time, “If the top dogecoin holders sell most of their coins, they will get my full support. Too much focus is the only real problem in my opinion. I will literally pay real dollars if they just cancel their accounts.
Dogecoin’s all-time high price last May coincided with Mr. Musk’s appearance as host of Saturday Night Liveduring which he made frequent references to cryptocurrency.
The price peaked near $0.70, but then crashed to around $0.10 before its final rally. Despite the volatility, dogecoin is still up over 7000% in the past two years.