Dogecoin has benefited and suffered1, from the tweets and moves of billionaire Elon Musk. In 2021, Dogecoin soared to new heights on the wave of Saturday Night Live, announcing Musk as a guest host. However, a crash would soon happen after the show started and Musk made terrible jokes about Dogecoin.
But now Dogecoin is on a fresh wave with him in 2022. Just like sports news having dramatic stories, so has Dogecoin in 2022. The new dramatic story that is making waves for Dogecoin is Musk buying the social media site of Twitter.
How Does A Musk Ownership of Twitter Factor Into Dogecoin?
For investors and holders of Dogecoin, they already know the answer. However, people new to Dogecoin might be unfamiliar with his connection to the cryptocurrency. Musk has been tweeting about Dogecoin since 2019, and has since been known as the Doge Father of Dogecoin.
Whenever he tweets about Dogecoin, people would see the crypto in the green. When he announced Tesla would accept Dogecoin for payments, that helped the crypto as well. Now, with the billionaire buying Twitter, Dogecoin is riding a wave of green as April comes to a close.
As a proponent of free speech on social media, Musk looks to turn Twitter into a free speech zone for all users. The move has people believing Dogecoin might factor into Musk’s ownership of one of the biggest social media platforms outside of Facebook. However, all we currently have on a Dogecoin friendly Twitter under Musk is speculation.
How the Musk and Twitter Rumors Fueled Dogecoin
When reports stated the billionaire was buying Twitter, Dogecoin saw an increase of nearly 14%. As his supporters kept banking on a Twitter buy-out, Dogecoin kept rising. By the time Twitter accepted Musk’s $44 billion bid for the company, Dogecoin was up 26%.
There is a cautionary tale to learn for people with Musk’s deal for Twitter. The caution comes from an event that happened last year with Musk and Dogecoin during late night television.
Could the Twitter Ownership Wave Be A Bust Like Musk’s SNL Performance?
On the heels of SNL announcing Musk’s guest hosting appearance, Dogecoin shot up to over 70 cents. However, after taking the stage and saying Dogecoin was a hustle, the value would start crashing. The same might happen if a Dogecoin friendly Twitter falls flat under his watch.
An old saying should be remembered by Dogecoin investors buying into the Twitter ownership wave. The saying is this, “Fool me once, shame on you, fool me twice, shame on me.” Those investors could be fooled by the billionaire, as he hasn’t assured his takeover of Twitter would promote Dogecoin.
However, there are chances of Dogecoin benefiting from the deal in the long-term. But it’s a tremendous risk putting Dogecoin into the hands of one man and his whims. If Dogecoin wants to succeed, it needs to stand on its own, without the help of Musk.
Will Musk Change Twitter and Will it Benefit Dogecoin?
Life is about what others can do for you in 2022. The same can be said about this takeover of Twitter by the Doge Father himself. People are expecting Musk to change Twitter, and for the better in their eyes.
However, there isn’t a magic wand to wave, giving people what they want. But that’s not stopping the speculation and dreams of these people online. They know, in their minds, he will change Twitter into the free speech zone they saw him tweet about.
They also believe Dogecoin will factor into Twitter with the billionaire running the show. However, they don’t realize that won’t immediately happen. Yet, people are buying Dogecoin on those speculations.
Until things are put into action, the speculation could inflate Dogecoin, priming it for a bubble bust. However, if Musk makes good on promises of a free speech Twitter and gives Dogecoin supporters what they want, that inflation could go to the moon. But it is wise to invest with caution into Dogecoin.
The reason for this comes from what happened last year. Don’t let a potential fear of missing out fool you like others were last year.