Dogecoin (DOGE) surged by 9% in the past hour following reports of Elon Musk being close to purchasing the entirety of Twitter at $54.20 a share.
DOGE surged to as much as $0.14 at writing time from the $0.12 level in Asian morning hours. Twitter (TWTR) futures trading in Frankfurt jumped 6.48%, data shows.
Social media giant Twitter is working out the terms of the transaction and could reach an agreement as soon as Monday, as per Reuters. Musk, who owns electric car maker Tesla and space exploration firm SpaceX, among other businesses, currently owns 9.2% of Twitter, as per a filing earlier this month.
Dogecoin's price and Musk’s imminent takeover of Twitter are not directly correlated. However, some analysts say Musk’s repeated endorsement of the memecoin attracts speculation from crypto investors hoping for dogecoin to be included in Twitter’s long-term plans.
“The speculation is that advertisers could be able to pay DOGE for ads and for other uses on Twitter,” Kryptomon Chief Marketing Officer Tomer Nuni explained to CoinDesk earlier this month. “We have 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.”
Earlier this month, Musk teased DOGE payments on Twitter in a tweet, proposing dogecoin as one of the payment options for Twitter Blue, the site’s subscription service with premium features.
Tesla already accepts DOGE payments on its online merchandise store. Musk has also previously lent support to dogecoin development and adoption, such as a May 2021 tweet that saw Musk state he was working with dogecoin developers to improve system efficiency.
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