Dogecoin slumps after Elon Musk-Twitter deal finalize. Elon Musk, the CEO of Tesla, has reportedly signed a $44 billion deal to take over Twitter, according to a report from CNBC.
The departure of Twitter’s CEO Parag Agarwal and chief financial officer Ned Segal was also announced by CNBC reporter David Faber in a tweet. The executives “will not be returning,” according to Faber.
The news follows Musk’s tweet on Thursday in which he explained why he was buying the social media site.
Faber, on the other hand, predicts that Musk will fire some employees, perhaps as many as “three-quarters of the staff.” Faber thinks that Musk might be acting as the interim CEO of the microblogging service given that the 51-year-old billionaire changed the description of his Twitter account to “Chief Twit.”
Dogecoin falls as Twitter acquisition deal concludes
Dogecoin which surged over 35% from Monday in anticipation of the Elon-Twitter deal, plunges post the deal. It ends up being a sell-the-news event.
At the time of writing, DOGE fell by 5.75% in the last 24 hours. DOGE is currently trading at $0.07473. It touched a high of 0.08483 before falling to this price.
It’s unclear exactly when or why Elon Musk fell in love with dogecoin. The billionaire CEO of Tesla and SpaceX has been promoting the token for years.
Dogecoin has frequently reached new record-high prices as a result of Musk’s tweets, which occasionally make oblique references to it. Additionally, these posts have promoted interest among retail investors.
Musk is not the only famous person endorsing the animal-branded token, though. Snoop Dogg, Kiss bassist Gene Simmons, and Dallas Mavericks owner Mark Cuban have all previously publicly backed dogecoin.
The comedic cryptocurrency was introduced in 2013 by software developers Billy Markus and Jackson Palmer as a way to mock bitcoin and the numerous other cryptocurrencies boasting ambitious plans to take over the world.
There are currently very few applications for the token. Even though more businesses started taking dogecoin last year, it still hasn’t reached the level of acceptance required to be used as a true currency substitute.
Due to these restrictions, the rise in the value of dogecoin seems to be entirely speculative. Dogecoin is valuable because others think it is valuable.