Dogecoin Rallies After Musk Joins Twitter Board

The value of Elon Musk promoted cryptocurrency Dogecoin soared by 11%, per Messari data, after Twitter made a public announcement regarding the onboarding of Elon Musk to its board of directors.

Interestingly, it is the second spike in doge’s value over Musk and Twitter-related news. While Monday’s move seemed temporary, Doge is rising again as it crossed the $0.16 mark for the first time in two months. Further, according to CoinDesk data, Dogecoin is not higher by 30.6% over the last 30 days.

It may be recalled that Musk recently brought a 9.2% stake in the microblogging giant a day after calling out its free speech policy and initiating a Twitter poll asking users if they want an edit button on the site.

Now Musk will soon be joining Twitter’s board of directors. According to inside reports, Elon Musk agreed not to increase his stakes higher than 14.9% in the microblogging platform as part of the deal to join its board of directors.

Musk and the new Twitter CEO, Parag Agrawal, exchanged pleasantries over Musk joining the board.

In a tweet, Agrawal said, “Through conversations with Elon in recent weeks, it became clear that he would bring great value to the board.” Responding to Agrawal, Musk said, “Looking forward to working with Parag and Twitter board to make significant improvements to twitter in coming months!”

For the uninitiated, Tesla Inc CEO Elon Musk has been a fervent promoter of Dogecoin. A few months back, he even allowed Dogecoin to be accepted as a valid mode of payment at Tesla’s supercharging stations and its online merchandise store.

As per experts’ opinion, the news of Musk’s Twitter onboarding rallied the price of Dogecoin as users expected that Musk could push for the integration of Dogecoin as a mode of payment in the microblogging giant. Many speculated that with Musk joining Twitter’s board, Twitter might soon accept doge as a mode of payment for advertisements and other uses on the platform.

Hinting at a similar sentiment, Kryptomon Chief Marketing Officer Tomer Nuni said, “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.”

However, other crypto experts doubt this will happen and cautioned this overhyped response to Musk joining Twitter’s board of directors. Bob Iaccino, a chief strategist at Path Trading Partners, called it sheer wishful thinking of those invested in dogecoin, thinking Musk would get it integrated on the microblogging platform.

“If anything, his position on Twitter’s board makes it harder for him to use Twitter (if we were to assume he was deliberately using Twitter for this purpose) to pump the price of anything. He is in much more specific danger of regulatory action if he does that.” he said.

It may be noted that American antitrust laws require mandatory disclosure if an individual or entity acquires more than a 5% stake in another market entity. Many believe that developments over the last week might have already put Tesla’s CEO on the Security and Exchange Commission’s radar.

Interestingly, Musk has only filed the form 13G and not 13D officially, reporting his ownership of more than 5% of Twitter. One filed for 13G when one acquired more than 5% stake in a company “not with the effect of changing or influencing the issuer’s control,” but if the buyer intends to join the board, he had to file the form 13D stating his intentions.

Now, as it is official that Musk will be joining Twitter’s board of directors, it will be worthing seeing the reaction of the Security and Exchange Commission.

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