In response to Twitter’s announcement that its board of directors had approved Musk’s $44 billion buyout offer, Dogecoin surged as much as 27% on Monday. CoinGecko reports that Dogecoin has lost much of those gains in the last 24 hours, and is down 11%.
During its pop on Monday, dogecoin reached a high of 16.5 cents, but dropped as low as 13 cents on Tuesday. At the moment, it is trading at about 14 cents.
While Musk’s effect on Dogecoin has diminished, the synergy between Tesla’s CEO and the cryptocurrency isn’t new. During early April, the cryptocurrency’s price jumped when Musk acquired a 9.2% stake in Twitter.
Developers Billy Markus and Jackson Palmer, created Dogecoin as a joke in 2013. Based on the “Doge” meme, which portrays a Shiba Inu dog. It was “created for sillies,” Markus wrote in a 2021 Reddit post. “I threw it together, without any expectation or plan. It took about 3 hours to make.”
Musk began tweeting about Dogecoin in 2019, years after he took an interest in the cryptocurrency. His support of Dogecoin is attributed to the fact that he believes it’s a “people’s crypto,” which he worked with developers on improving.
Musk has repeatedly backed Dogecoin and other cryptocurrencies since then. He has influenced the price of cryptocurrencies on numerous occasions through his tweets.
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