Dogecoin Price Drops as Elon Musk Returns Twitter Logo
[TL; DR]
When Twitter’s logo was changed to the Shiba Inu dog image its price increased by 30%.
When Twitter’s logo reverted to the iconic blue bird its price fell by close to 10%.
Elon Musk is being sued for $258 billion for allegedly running a pyramid scheme to help Dogecoin.
Introduction
Most people take cryptocurrencies as speculative assets due to the possibility of huge fluctuations in their values. Simple things may affect the price of cryptocurrencies. Recently, Twitter’s adoption of the Shiba Inu Dog image as its logo resulted in a rise in the value of the Dogecoin.
Dogecoin gained by 30% after change of Twitter Logo
The price of Dogecoin spiked by 30% on 3 April after Twitter adopted the Shiba Inu Dog image as its logo. In fact, the price of Dogecoin increased by 30% within thirty minutes following the change of Twitter’s logo. As such, its value increased to more than $0.10, crossing above the December 2022 threshold. At the same time, its worth grew by around 20%.
Read also: Elon Musk’s post raises environmental concerns over Bitcoin
Twitter did not provide the reasons behind the change of its logo. In addition, Elon Musk did not comment on the change of the logo, something the community had expected from him. However, Musk later posted a tweet of a Shibu Inu dog image showing an ID photo of the Twitter Bird to a police officer accompanied by the words, “That’s an old photo.”
However, the opposite was true. When Twitter reverted to its iconic blue bird logo, the value of Dogecoin fell by over 10%, plummeting to around $0.08.
For a long time, Musk was a strong advocate of Dogecoin. In fact, Musk is one of the most influential personalities in the crypto sector as his comments can influence the prices of various cryptocurrencies including Dogecoin and Bitcoin.
Dogecoin- Cryptostars
When Twitter replaced its iconic blue bird logo by the image of the Shiba Inu dog many crypto fans interpreted it differently. A few of them believed that the change of the logo was Twitter’s 1 April prank while others thought it was a signal that it was going to integrate Dogecoin as one of its payment cryptocurrency.
Musk’s love for Dogecoin is unquestionable as he previously stated that he only holds three cryptocurrencies namely ETH, BTC and Dogecoin. In 2021 Musk openly said that Dogecoin was the “currency of the people” and his “favorite cryptocurrency.”
Read also: Dogecoin (DOGE) Price Prediction 2023-2030
Elon Musk sued for $258 billion
Twitter’s change of logo came a few days after Musk took legal action to dismiss the $258 billion lawsuit where he is being accused of running a pyramid scheme to help Dogecoin. The lawsuit claims that Musk was part of a group of people that manipulated the price of Dogecoin to increase by 36,000% two years ago.
In fact, The Manhattan Federal Court accuses Musk, SpaceX, Tesla and The Boring Company, among others of such price manipulation. The complainants believe that Musk’s companies benefit from the rise in the value of Dogecoin. They claim that Musk hyped the Dogecoin, knowing that the memecoin had no intrinsic value.
Incidentally, the memecoin lost it’s upwards momentum when Musk, during a Saturday Night Live (SNL), said that Dogecoin was a “hustle.” While it is clear that the price momentum of Dogecoin slackened following Musk’s Saturday Night Live, it may be difficult to prove that Musk benefitted from the fall in its price.
Elon Musk twitter CEO - Foxbusiness
The fact that Musk has insisted that he had never sold Dogecoin may prove that he did not benefit from the change in its price momentum. Also, prior to the Saturday Night Live show Musk made it clear that investors should not invest their life savings in cryptocurrencies.
He said, “First of all, I think people should not invest their life savings in cryptocurrency. To be clear, I think that’s unwise. But if you want to sort of speculate and maybe have some fun, there is a good chance that crypto is the future currency of Earth.”
Already, Musk’s legal defense counsel has filed a motion to dismiss the lawsuit on several grounds. For example, the team has said, “There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency.”
The lawyers have argued that the plaintiffs have failed to explain how Musk has defrauded the investors. They also say that Musk’s comments such as “Dogecoin Rulz” and “no highs, no lows, only Doge, are very ambiguous to support a fraud claim.
Elon Musk becomes CEO of Twitter
Musk became the new CEO of Twitter in November 2022 after acquiring the social media platform for $44 billion dollars.
According to Reuters, Musk declared that he had fired the Twitter board before he became the new CEO. He said, “The following persons, who were directors of Twitter prior to the effective time of the merger, are no longer directors of Twitter: Bret Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lane Fox, Patrick Pichette, Egon Durban, Fei-Fei Li and Mimi Alemayehou.”
A short time after saying the above, Musk posted on Twitter that it is “just temporary,” meaning that he could become the CEO for a short period. However, from 1 November 2022, Musk has been making decisions on the running of Twitter.
how to buy Dogecoin on Gate.io?
You can buy Dogecoin tokens at Gate.io by following a few steps. The first step is to create and verify your Gate.io account. The next step is to fund your account using any of the major cryptocurrencies like Bitcoin, USDT or ETH.
You can purchase these major cryptocurrencies using a bank transfer or a credit card. Once you have any of these cryptocurrencies in your account you go to the how to buy ht and select the suitable pair such as USDT/Dogecoin as indicated below.
Once you click on that pair, USDT/Doge, a new window will open that allows you to input the amount of Dogecoin you want to buy.
Once you have input the amount of the Dogecoin you want to purchase click on “buy doge.” After that you will need to confirm the transaction.
Conclusion
The price of Dogecoin responded to changes in Twitter’s logo. When Twitter changed its logo to the Shiba Inu Dog image its price increased by over 30%. However, when Twitter reverted its log to the original Twitter bird the price of Dogecoin fell by 10%.
