Dogecoin Surges on Twitter Logo Change
Dogecoin, the cryptocurrency born as a joke, experienced a surge in value on Tuesday following a change in the Twitter logo. The social media company replaced its iconic blue bird with Dogecoin’s Shiba Inu dog on Monday, helping the meme coin add as much as $4 billion to its market value. Elon Musk, a vocal proponent of cryptocurrencies and the second-richest person in the world, tweeted that he had delivered on his promise of changing Twitter’s logo to Dogecoin’s dog, causing the cryptocurrency to surge from 7 cents to 10 cents around 1500 EST.
Before the news, Dogecoin had a market value of around $10 billion, but with a market capitalization of $13.7 billion, it is now the seventh biggest cryptocurrency. Musk has heavily influenced prices for Dogecoin and Bitcoin in the past, and last month, Dogecoin more than doubled after he sealed a $44 billion deal to take over Twitter.
However, the move to replace Twitter’s logo with Dogecoin’s dog is not expected to have any real impact on the cryptocurrency, which has no fundamental use and was born as a satire of the cryptocurrency frenzy in 2013. Cryptocurrency exchange Binance, which invested $500 million into Musk’s buyout of Twitter, had said it was brainstorming strategies on how blockchain and crypto could be helpful to Twitter. However, a year later, Twitter has yet to announce any crypto-specific initiatives, according to Stéphane Ouellette, Chief Executive at digital asset investment platform FRNT Financial.
Despite the uncertainty, the Shiba Inu token, a spinoff of Dogecoin which trades in fractions of cents, also rose 5.6% to $0.000014 on Tuesday. The recent surge in Dogecoin’s value is another example of the power of social media and how celebrity endorsement can influence the market. However, it is important to remember that cryptocurrency is a highly volatile and speculative investment, and investors should exercise caution when considering investing in it.