Elon Musk, the newly appointed CEO of Twitter, has a long and often contentious history with cryptocurrency. There was that time when Tesla began accepting Bitcoin, followed by Musk’s abrupt reversal of the decision, which enraged many crypto enthusiasts. Perhaps more notable was his time spent playing with the meme coin known as Dogecoin, which is based on — you guessed it — the Doge meme. The coin was never intended to be valuable, but due to Musk’s attention, some people became extremely wealthy seemingly overnight.
Then there’s the Twitter acquisition, which became a legal squabble that revealed some interesting information, including Musk’s apparent belief that society requires “a new social media company… based on a blockchain and includes payments.” Twitter has a history of dabbling in cryptocurrency due to former CEO Jack Dorsey’s interest in the digital currency, and some enthusiasts are hoping Musk will bring the two — cryptocurrency and Twitter — together in a big way. Some are banking on Dogecoin and the (unlikely) possibility that Musk will link it to his new social media company.
Dogecoin value is climbing, but don’t get too excited
Dogecoin, which soared in value after receiving some attention from Elon Musk, is once again on the rise. The increase is undoubtedly due to Musk’s acquisition of Twitter, with some hopeful — perhaps delusory — individuals speculating on whether the billionaire will convert Dogecoin into some sort of official Twitter coin. According to CoinMarketCap data, Dogecoin’s particularly low value stabilized around May 2022, following months of a slow decline following its 2021 high. However, when Musk announced that the Twitter deal had been finalized, the value skyrocketed.
Dogecoin was effectively worth nothing in 2014, with a price of about $0.0003 per coin. That hasn’t changed much over the years — its all-time high was only $0.74 (via CoinDesk), though that was quite significant for those who had amassed large amounts of the meme coin. Dogecoin had a value of around $0.06 per coin on October 25, which had risen to around $0.13 on October 31. Of course, that’s still quite low, and experts have repeatedly warned against investing in the meme coin, citing the essentially infinite number of coins in circulation as the main reason (via Analytics Insight).
That reality does not appear to be deterring some from purchasing Dogecoin in the hopes that Musk will either directly or indirectly cause it to rise in value again. It’s difficult to predict what Musk will do — he’s notorious for sharing memes, so it’s entirely possible he’ll reintroduce Dogecoin. However, Musk may be unwilling to return to the meme coin because he is currently facing a lawsuit over it (via Reuters).