Dogecoin surges after Twitter accepts Musk's buyout offer

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As the news about Elon Musk purchasing Twitter spread, the prices of the Tesla-endorsed meme coin Dogecoin surged by over 27 percent on Monday. Twitter’s share price rose 5.6 percent by the end of the day. The meme coin had jumped from $0.12 to $0.16 at the time of writing. Musk holds 9.2 percent of Twitter, making him the company's largest shareholder.

The Twitter buyout and Dogecoin price rise have no direct correlation. But the news has attracted a lot of speculation in the cryptocurrency markets, with investors hoping that Dogecoin would find a place in Twitter’s long-term plans.

Kryotomon’s CMO, Tomar Nuni, had avered earlier this month, “The speculation is that advertisers could be able to pay DOGE for ads and other uses on Twitter. We had seen the same happening when Tesla revealed the ability to pay for its goods with DOGE. So the speculation could be around Musk’s businesses and stakeholdings starting to accept crypto, as Tesla does.”

In a tweet earlier this month, even Elon Musk had hinted at Doge as a possible payment option for Twitter Blue—the subscription-based version of Twitter with premium services. Tesla already accepts Doge as payment for its online merchandise store. He had also tweeted about working with Dogecoin developers to improve adoption and development, in another May 2021 tweet.

Dogecoin is the 10th largest cryptocurrency by market capitalization and is inspired by the 2013 Doge meme. It was created as a joke cryptocurrency to mock Bitcoin’s volatility. The meme cryptocurrency gained prominence after the Tesla CEO endorsed it in a series of tweets last year. In 2021, Elon Musk was being touted as the self-proclaimed Doge father, and his tweets had quite an impact on the cryptocurrency’s price movements. In May 2021, Dogecoin rallied to its all-time high of 67 cents riding high on Musk’s posts.