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Twitter to accept Dogecoin? DOGE price races as Elon Musk agrees to buy TWTR again

By Raphael Sanis

Edited by Charlie Mellor

10:24, 5 October 2022

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In this article:
DOGE/USD
DogeCoin / USD
0.0960975 USD
-0.0043303 -4.350%
TSLA
Tesla
173.54 USD
-6.37 -3.550%

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Dogecoins rest on a smartphone displaying Twitter
Musk’s bullish tweets have often impacted the price of dogecoin – Photo: Shutterstock

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.

DOGE/USD

0.10 Price
-4.350% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0012155

BTC/USD

16,852.30 Price
-1.170% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

XRP/USD

0.38 Price
-1.940% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00327

ETH/USD

1,236.15 Price
-2.050% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 5.00

One text thread between Musk and Steve Davis, president of The Boring Company, explored a crypto-version of Twitter, according to TechCrunch. Musk said:

“My Plan B is a blockchain-based version of Twitter, where the ‘tweets’ are embedded in the transaction of comments. So you’d have to pay maybe 0.1 DOGE per comment or repost of that comment.”

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.

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.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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