The price of the popular meme cryptocurrency, Dogecoin (DOGE), surged nearly 26% on April 3, 2023, after the Shiba Inu mascot appeared on Twitter, replacing the platform's usual blue bird icon. This sudden price hike also impacted the Shiba Inu token (SHIB), which saw a 4.4% increase on the same day.
Twitter, now owned by billionaire Elon Musk, has become a significant platform for discussing and influencing cryptocurrency markets. Musk, a well-known Dogecoin supporter, has frequently impacted the token's price with his comments and tweets. The recent change in Twitter's logo to the Shiba Inu mascot has fueled speculation about a possible integration of cryptocurrency components in the social media platform and the acceptance of DOGE as a form of payment.
The timing of these events is interesting, as Musk recently asked a federal court to dismiss a $258 billion lawsuit accusing him of intentionally pumping Dogecoin's price, only to let it plummet later. Musk's lawyers defended the legitimacy of his supportive tweets, stating, "There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion."
This unexpected surge in Dogecoin's price led to a jump in Dogecoin futures liquidations, reaching $26 million, which is higher than usual for the memecoin. According to data from Coinglass, $10 million in longs and $13 million in shorts were liquidated. Crypto exchange OKX was the most impacted, with $12 million in losses on Dogecoin futures positions. Open interest in Dogecoin futures also surged to over $580 million.
It's worth noting that the Shiba Inu logo change on Twitter was not experienced by all users, as it appeared to be limited to those in the US and Europe. Despite the confusion surrounding the event, Musk's tweets suggest that the logo change was not an April Fools' joke.
Musk has often touted DOGE's payment functionality as superior to that of Bitcoin (BTC), leading to discussions about potential integration with Twitter's payment systems. However, the volatility of Dogecoin and its lack of unique advantages over other cryptocurrencies have discouraged many investors from considering it a long-term investment option.
In conclusion, the recent events surrounding Dogecoin, Twitter, and Elon Musk have brought the memecoin back into the limelight. While its price surge and the related liquidations have captured the attention of the market, the long-term prospects of Dogecoin as an investment remain uncertain.
Juliette Twain: Jun 19, 2023 11:48:10 AM
