Dogecoin prices surged on Tuesday after Elon Musk, the world’s richest man, said he would join the social media company’s board.
Tesla CEO Elon Musk announced his acquisition of 511,928 shares on Friday, the company’s second day of trading.
The news comes one day after Musk revealed his stake in Twitter, making him the firm’s largest individual shareholder.
Musk’s addition to the board is seen as a positive for Dogecoin, which has been one of the biggest beneficiaries of his tweets in recent months.
According to Agrawal “It became clear to us in recent weeks that Elon would bring significant value to the board.”
Twitter CEO Jack Dorsey said in a statement: “I’m excited to welcome Elon to the Twitter Board.
This is a strong addition as we continue our work to make Twitter a more valuable service for all users.”
The billionaire has been a vocal supporter of the meme-based cryptocurrency, helping push its price from less than $0.01 in January to more than $0.0874 in March.
The price of Dogecoin, a cryptocurrency that was started as a joke in 2013, rose more than 20% to $0.0874 after Musk’s announcement.
Musk, the CEO of Tesla (TSLA), has praised dogecoin in recent months, allowing it to be used at Tesla’s superchargers and its online store.
Now a board member and the owner of Twitter’s largest individual stock, Musk might push for DOGE payments to be integrated into the social network’s platform.
While it’s unclear what, if anything, Musk plans to do with Dogecoin now that he’s on the Twitter board, his influence in the cryptocurrency world is undeniable.
And with Dogecoin currently sitting at a $11 billion market value, it’s clear that people are taking Musk’s Dogecoin serious.
That doesn’t add up according to Bob Iaccino chief strategist at Path Trading Partners and co-portfolio manager at Stock Think Tank:
“It’s dogecoin lovers who are daydreaming.” “If anything, his seat on the Twitter board makes it more difficult for him to artificially drive up the price of anything (assuming we were to assume he was deliberately using Twitter for this purpose). He would be in far greater risk of regulatory action if he did that.”
In contrast to Bob laccino, Tomer Nuni, Kryptomon Chief Marketing Officer, expresses a different opinion. For Tomer:
“This is Elon we’re talking about. He’s not afraid of taking risks, and he certainly knows how to get people’s attention.”
And that Elon Musk knows how to get people’s attention is an understatement, according to Bloomberg Elon Musk has the “world’s most valuable Twitter account” with 52 million followers.
“When Tesla made the option available to pay for its goods with DOGE, we witnessed a similar phenomena.
As a result, the speculation may be about Musk’s companies and holdings beginning to accept crypto as Tesla has already done.”
So while Elon Musk joining the Twitter board may not have an immediate effect on Dogecoin, it could signal that more businesses will begin to accept cryptocurrency as payment.
This would increase the demand for Dogecoin and cause the price to rise. So if you’re thinking of investing in Dogecoin, now might be a good time to do so.
In the midst of a bear market, Dogecoin’s value has recovered by 30.6% in the last 30 days, according to CoinDesk data.
The move comes as bitcoin, the world’s largest cryptocurrency by market value, is on a tear that has seen it climb more than 70% this year.
Ethereum, the second-largest digital asset, is up about 400% over the same period.
Though Dogecoin isn’t without its own challenges. The meme-based token has been dogged by concerns over its inflation rate and Elon Musk himself has warned of the risks associated with investing in cryptocurrencies.
Still, investors seem to be undeterred by these concerns and are betting that Elon Musk’s involvement will help take Dogecoin to new heights. Only time will tell if they are right.