New Twitter owner Elon Musk continues to download Tesla stock, which have lost as much as 46% since the beginning of the year. In the face of the drop in the prices of the electric car (EV) giant, it stands out the boom of Dogecoin: from the practically zeroed price of about $ 0.07 on October 27, shortly before the tweet “The bird is freed” with which Musk announced that he has completed the acquisition of TWTR, the prices of the cryptocurrency born as a joke have doubled:
in the five days following the announcement Dogecoin prices have jumped, reports the Reuters news agency, to $ 0.16. It must be said that today is a decidedly bad day for the crypto universe in general, due to the new crypto drama which sees Binance and the rival FTX as protagonists and which causes the prices of Bitcoin and Ethereum to collapse: the Dogecoin is not saved and is also overwhelmed by disposals.
The fact remains that the new Twitter ownership did well at Dogecoin prices, the crypto itself which, towards the end of April 2021, was flying 8,000% YTD, spiking by 455% in one week and confirming itself as the fifth largest digital currency by market capitalization; the same crypto meme which, with a market value of over $ 50 billion at the time, was worth more than the banking giants ING and Barclays or the big auto Ford. And that shortly afterwards it also capitalized more than Intesa SanPaolo and Stellantis, not far from Enel.
Merit (but not only) of crypto influencer Elon Musk, who with his tweets had triggered Dogecoin fever.
Musk’s Twitter is good for Dogecoin: Tesla’s CEO is the king of crypto influencers
A tweet with an image accompanied by the writing “Doge Barking at the Moon” (‘To the moon’ was the rallying cry to the Reddit / WallStreetBets audience for GameStop action) was enough to ignite the euphoria of Musk’s followers. A year and a half later, the Musk-crypto influencer effect hit again: in five days, the massive buys that poured into the cryptocurrency caused Dogecoin’s market capitalization to jump to $ 21 billion, according to data released by the CoinGecko platform, reported by Reuters.
“Trading Dogecoin on Elon’s tweets has become a profitable form of speculation “, he told Reuters Matthew Dibb, operating director of the crypto investment management firm Stack Funds, based in Singapore.
Tesla’s number one, now also Twitter’s (and Space X’s) number one played a major role in the rise of a digital currency, the Dogecoin, created by two software engineers in 2013.
Also in 2021 Elon Musk called the crypto meme “The people’s crypto”, immediately triggering the buy in his role as king of crypto-influencers.
The rally was also triggered by Mark Cuban, owner of the Dallas Mavericks basketball team, who said he was convinced that the purchasing power of the parody currency was greater than that of $ 1 deposited in the bank.
History of Dogecoin: the crypto meme born as a joke
The crypto meme came like this to rocket 26,000% in just six months thanks to the assistance of the founder of Teslaalso becoming the fourth largest cryptocurrency by market capitalization, worth more than $ 69 billion.
Of course, things have certainly changed since then, considering that, after the record at $ 0.63 tested in May 2021, the Dogecoin has begun to discount the fears related to the economic trend and the war in Ukraine caused by the invasion by Russia.
Result: even considering the last rally, the crypto meme travels 57% lower than it was a year ago. Prices, after the flare up caused by Musk, now fluctuate around $ 0.12, making Doge the eighth largest cryptocurrency in the world, with a capitalization that, according to data from CoinGecko, is about 16 billion dollars.
That said, crypto watchers pointing out that the latest spurt, following the completion of Elon Musk’s $ 44 billion acquisition of Twitter, was sparked by bets that Dogecoin could even become part of the microblogging company’s payment system.
“There is a lot of speculation that Twitter will launch a test for the adoption and experimentation of Dogecoin for different uses “, Dibb said again. On the other hand, in May 2021, Musk launched Twitter poll: ‘Do you want Tesla to accept Doge?’ .
Musk into Twitter downloads Tesla shares (again)
If the Dogecoin has Elon Musk’s assist, Tesla, on the other hand, has been without it, and for a long time, given that the tycoon, all taken by the Twitter fever, continues to sell off the titles of the auto giant founded by himself.
From the documentation filed with the Sec, it emerged in the last few hours that the new CEO and owner of Twitter sold other Tesla shares worth at least $ 3.95 billion after completing its acquisition of Twitter.
Shares sold by the number one electric car maker were 19.5 million.
By 2021, Musk had sold nearly $ 22 billion worth of Tesla stock – in that year, the EV giant’s stock jumped more than 50%.
This year, Twitter’s new owner sold more than $ 8 billion worth of Tesla stock in April and about $ 7 billion worth of stock in August.
On August 9, Musk announced that the sale of Tesla shares aimed at financing the Twitter acquisition could now be considered closed:
“In the event (hopefully unlikely) that Twitter forces us to close the deal and some equity financing partners do not show up, it is important to avoid emergency sales of Tesla securities “.
Compared to Nasdaq Composite which, since the beginning of the year, has lost about 33%, Tesla stocks plummeted 46%, wiping out much of Elon Musk’s fortune. Who, however, with a net worth close to $ 200 billion, is still according to Forbes the richest man in the world.