2 Reasons Dogecoin Was Up 11% Over the Past 3 Days. Should You Buy?
Robinhood's CEO says Dogecoin could be the "Currency of the Internet," and Elon Musk's attempt to buy Twitter might push DOGE higher.
- On Thursday, Robinhood CEO Vladimir Tenev tweeted to his 202,000 followers several reasons why he believes Dogecoin could be the "Currency of the Internet."
- Earlier in the day, Tesla CEO Elon Musk made a $43 billion bid to buy Twitter after he recently acquired 9.2% of Twitter stock, becoming the largest individual shareholder.
- Musk has heralded DOGE as a "superior payment" method in the past and has used Twitter several times as a platform to demonstrate his support for the dog-themed coin. Even going so far as naming himself the "Doge Father."
- During a webinar last summer with then Twitter CEO, Jack Dorsey, Musk pressed Dorsey to allow Twitter advertisers to pay using "Bitcoin and maybe some other cryptos" suggesting Musk may have plans for DOGE if his Twitter deal goes through.
- At time of writing, DOGE was up as much as 11% over the past three days and 31% over the past month.
On Thursday, the CEO of Robinhood, Vladimir Tenev, tweeted to his 202,000 followers that he believes Dogecoin (DOGE) could be the "Currency of the Internet." His initial message reads:
"Can #Doge truly be the future currency of the Internet and the people? As we added the ability to send/receive DOGE on Robinhood, I've been thinking about what that would take."
Tenev then gave several reasons for this rationale supporting DOGE as supreme currency of crypto, including the Dogecoin network's low transaction costs, fast settlement speeds which can be further improved, and an inflation rate that's currently lower than 5% -- which is less than that of the U.S. dollar.
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Elon Musk's bid to buy Twitter could be big for DOGE
Earlier in the day, Tesla and SpaceX CEO Elon Musk made a $43 billion bid to buy Twitter after he recently acquired more than 9% of Twitter stock to become the largest individual shareholder.
Musk has heralded DOGE as a "superior payment" method in the past and has used Twitter several times as a platform to demonstrate his support for the dog-themed coin. Even going so far as naming himself the "Doge Father."
During a webinar last summer with then Twitter CEO, Jack Dorsey, Musk pressed Dorsey to allow Twitter advertisers to pay using "Bitcoin and maybe some other cryptos." suggesting Musk may have plans for DOGE if his Twitter deal goes through. Musk has long believed that Dogecoin is a better method of payment than Bitcoin, has pushed Twitter to accept Dogecoin for tipping, and days ago stated that Twitter Blue -- the social network's paid subscriber option -- should accept Dogecoin as payment. It's also worth noting that during a feature article in December 2021 published in TIME, Musk stated that Dogecoin was a superior digital payment method when compared to Bitcoin, further reinforcing Tenev's tweet series yesterday.
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Or Musk's Twitter bid is more about short-term profit than DOGE?
All this activity seems to have driven DOGE higher. According to CoinMarketCap at time of writing, DOGE was up as much as 11% over the past three days and 31% over the past month. However, despite the correlative price pump between DOGE and Musk's bid to buy Twitter, there are others -- such as crypto enthusiast and Shark Tank investor, Mark Cuban -- who think Musk's move on Twitter is motivated by profit and messing with the SEC, as Cuban noted in this tweet yesterday.
"My conclusion, @elonmusk is f*cking with the SEC. His filing w/the SEC allows him to say he wants to take a company private for $54.20 Vs his "Am considering taking Tesla private at $420. Funding secured" Price goes up. His shares get sold. Profit up. SEC like WTF just happened," Cuban stated.
Cuban's tweet alluded to a 2018 Twitter missive where Musk announced he planned to take Tesla private, but the SEC sued Musk for violating regulations that dictate how potentially stock-price-moving news can be made public. Musk settled with the SEC and stepped down as board chairman of Tesla as a result -- so it's possible this Twitter action is a swipe at the SEC. But not only does it appear Musk is messing with the SEC, he's also messing with the Twitter board of directors according to legal analyst Aron Solomon, J.D. at EsquireDigital.
"The Musk offer of $54.20 per share is fantastic. If Twitter turns this down, they will face a lot of class-action lawsuits from shareholders. The Twitter board loses no matter what. If they say 'no' to Musk, he has implied that he will sell his current 9.2% share -- with the clear expectation that shareholders will be injured because the stock will go down. In short, anything but an acceptance of Musk's offer may cause Twitter stock to spiral," Solomon stated in email comments.
Should you buy?
As of this writing, DOGE is up nearly 3% on the day but down 59% from its peak price of $0.74 last May, according to CoinMarketCap. While this is not financial advice, and keeping in mind that investors should always do their own research, if Dogecoin developers can implement some of Tenev's suggestions, Dogecoin might be worth considering if it becomes a primary on-ramp for mass crypto adoption.
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Tor Constantino owns Bitcoin.