Elon Musk’s imminent purchase of Twitter causes a positive price movement for Dogecoin as its perpetual swap volume surges.
Yesterday, several reports revealed that Elon Musk, Tesla’s CEO, is on the verge of acquiring Twitter after the board accepted his $44billion bid. The latest of the month-long saga comes after the world’s richest man gave cryptic hints about a possible tender purchase if his offer was rejected
Musk Set To Effect Radical Changes
With Musk on the verge of acquiring Twitter, more attention has turned to plans he intends to make for the microblogging platform. The world’s richest man, an ardent Twitter user, has accused the platform of preventing free speech. He has also made repeated calls for Twitter’s algorithm to be open source.
Furthermore, he revealed plans to relax content restrictions and eradicate fake accounts. He made his intentions known on Twitter
Recently, Twitter has faced increasing pressure from regulators and politicians over its content. Efforts to moderate misinformation on the site have garnered criticism from both the left and the right. Also, in one of its most high profile moves, it banned former US President Donald Trump, possibly its most influential user.
Despite his threats to pursue a hostile takeover of Twitter, Musk has maintained amicable relations with some key figures within the company. He has been trading friendly tweets with former CEO Jack Dorsey, a member of the Twitter board of directors. Musk backed Dorsey’s recent decision to change his position at Block from CEO to Block Head over the weekend.
One month price chart of Twitter Stock. Source: Yahoo Finance.
Despite the various sentiments regarding the acquisition, the chart above shows market sentiment favours the purchase. Twitter’s stock rose by approximately 30% the day Musk revealed his stake in the firm, reaching the $52 mark. Since then, it fell to about $45 before rising towards the $52 mark following the imminent purchase.
However, several experts believe Musk’s $54.20 per share bid is too low for Twitter. According to reports, several analysts believe Twitter’s board will only accept a deal that values the firm at least $60 per share. However, it’s worth noting that Musk is offering to buy Twitter shares for 54% more than they were selling for before he invested.
Dogecoin Rallies In Price
The crypto market has reacted to this development as perpetual swap volume for Dogecoin has spiked. Elon Musk had previously hinted at the possibility of introducing dogecoin payments to Twitter. Since reports about the possibility of Musk’s Twitter takeover, the volume in perpetual swaps for Dogecoin has increased by 6x in 24 hours. It reached a three-week high of $3.13 billion.
Not to be left out, the price of Dogecoin has also surged by over 19% since the reports broke out. This has followed a similar path meme coins usually take in reaction to Musk’s actions. Overall, the sentiment within the crypto community favours Musk’s bid to own 100% of Twitter.
Do you think Dogecoin is set to surge in price if Elon Musk eventually purchases Twitter? Let us know your thoughts in the comments below.
Chris is a crypto enthusiast and a firm believer in the blockchain’s ability to create a new financial paradigm. Through writing, Chris hopes to expose the intricacies of this disruptive technology and how it is beneficial to Africans and developing countries. He aims to give readers a rational and unbiased outlook of the industry by equipping them with the necessary information to make enlightened investment decisions.
