Twitter to accept Dogecoin? DOGE price races as Elon Musk agrees to buy TWTR again
The price of cryptocurrency dogecoin (DOGE) is rallying following the change of heart by Elon Musk to go through with the purchase of social media network Twitter.
The price of the meme token DOGE, which is is often influenced by the billionaire CEO of Tesla (TSLA), climbed by 9% after Musk’s attorneys sent a letter late last night to Twitter (TWTR).
DOGE to USD
He reproposed to buy Twitter for the originally agreed price of $54.20 per share or roughly $44bn in total.
This followed a looming trial for the billionaire as Twitter was pursuing legal routes after Musk backtracked on the offer in July.
Could Twitter accept dogecoin?
Other businesses owned by Musk have accepted the meme token for payments in the past. Consumers can purchase Tesla (TSLA) products with DOGE. However, these tend to be more aesthetic items, like belt buckles and a “cyberwhistle”, rather than one of its statement cars.
As Twitter is not a material product-focused business, it is difficult to forecast how the cryptocurrency could be incorporated if the deal completes. Its business model, like most social media apps, revolves around advertisement.
However, documents were released in the lead up to the Musk v Twitter trial, before the entrepreneur’s U-turn. These were a collection of texts between Musk and other significant figures.
One text thread between Musk and Steve Davis, president of The Boring Company, explored a crypto-version of Twitter, according to TechCrunch. Musk said:
The billionaire later decided that this model was currently not feasible, meaning it is unlikely that Twitter (TWTR) uses will have to pay DOGE for each comment or retweet.
Twitter (TWTR) share price chart
Dogecoin’s history with Musk
Musk and DOGE have a long history of appearing to be entangled. The richest man in the world has often had an impact on the meme token’s price.
And usually Twitter has been a key medium in these interactions. Take Musk’s tweet from 28 January of fashion pardoy ‘Dogue’ magazine, which sent dogecoin rocketing by 800%, according to CNBC.
— Elon Musk (@elonmusk) January 28, 2021
Similarly, Musk has referred to himself as the ‘Dogefather’ when announcing he would host TV comedy show Saturday Night Live on Twitter. This eventually saw DOGE breakout to its all-time high of $0.73 on 8 May.
While the bear market has impacted the meme token, it was rallying off the back of Musk’s recent U-turn. As of earlier on 5 October, it was trading at $0.64, up 5% over the past day.
Markets in this article
Related topics
