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Is DOGE really worth the hype even after Musk’s Twitter buyout?

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2022 continues to be a year of surprises, with one of the biggest so far being Elon Musk’s decision to acquire social media juggernaut Twitter for a whopping $44 billion. While the takeover has set into motion a whole host of debates — particularly those pertaining to Big Tech censorship — it has also called into question the future of Dogecoin (DOGE), a digital currency of which the billionaire has been a big proponent over the last couple of years.

To put things into perspective, just hours before Musk tweeted that “the bird is freed” on Oct. 27, the price of DOGE was hovering around $0.07. However, by Nov. 1, it had surged to $0.16, bringing the total market capitalization of the so-called memecoin to a sizable $21 billion. And while DOGE is currently trading close to $0.08, its 30-day profit ratio is greater than 40%.

It is also worth noting that every time Musk has tweeted in support of the digital asset, its value has skyrocketed quite dramatically. For example, throughout 2021, he continued to refer to DOGE as the “people’s crypto,” a message that sent the currency’s value flying by a whopping 4,000% over the course of the year.

Moreover, Tesla — an American multinational automotive and clean energy company helmed by Musk — started accepting DOGE as payment for its merchandise in January 2022, including its “Giga Texas” belt buckles and miniature vehicle replicas. Furthermore, Musk’s recently released joke fragrance, Burnt Hair, could also be purchased with DOGE.

A bleak future for DOGE?

To get a better idea of whether Musk’s Twitter takeover and constant support of DOGE stand to make an indelible mark on the digital currency’s financial future, Cointelegraph reached out to Lior Yaffe, co-founder of Switzerland-based blockchain software company Jelurida. Yaffe does not have too much faith in Dogecoin, judging from the poor decision-making displayed by Musk so far, adding:

“From paying too much for Twitter to causing companywide mayhem by firing many good employees and making terrible management decisions such as the blue check episode, I’m not optimistic about either Twitter or Dogecoin.”

Furthermore, he claimed he would be surprised if Musk can bring any real use cases to Dogecoin, noting that even if Musk intends to somehow integrate Twitter with crypto payments — which is a very difficult task — he doubts they will be able to achieve such a dream in the near future. “Even if they do manage to build a payment system around Twitter, there are much better blockchain solutions than Dogecoin to choose from with regards to security, privacy, smart contracts and scaling,” he stated.

Recent: Could Hong Kong really become China’s proxy in crypto?

Henry Liu, CEO of cryptocurrency exchange BTSE, told Cointelegraph that after taking into consideration the current macroeconomic environment, he foresees the price of DOGE continuing to remain highly volatile, much in line with the crypto market.

“We expect DOGE to stay speculative in the short run, and there should be reduced liquidity and trading volumes across various platforms. If DOGE can be given new utility regarding its collaboration with Twitter, we may foresee a spike driven by social media communities,” he said.

Not everyone is so skeptical

Nikita Zuborev, chief analyst for cryptocurrency exchange BestChange, told Cointelegraph that while one cannot discount the fact that the growth of meme tokens often happens suddenly and unreasonably, Musk’s recent acquisition of Twitter could potentially boost DOGE’s price, mainly because one cannot rule out the possibility of the asset being integrated into the firm’s social network ecosystem in the future. He added:

“If that happens, then the previously useless memecoin will turn into the platform’s central control token of sorts, reaching a massive audience in the process. Such a transformation will be able to bring the coin several use cases, something that many investors are betting on.”

To further strengthen his argument, Zuborev pointed to the upcoming launch of the SpaceX-backed Doge-1 lunar satellite, which is directly related to the brand of the coin. “These kinds of moves stand to provoke high demand in DOGE’s market and price growth,” he claimed. 

That being said, he did concede that as long as the asset’s primary selling point remains rooted in its meme-centric outlook, it would only be wise to add the currency to one’s portfolio just to diversify it. However, as a standalone investment, he does not give much merit to DOGE.

“Besides Dogecoin, Musk has repeatedly spoken quite positively about Bitcoin as well, a crypto that is far more stable and can be integrated into Twitter’s ecosystem easily. One can consider it as an alternative to DOGE, especially to capitalize on Musk’s continued market manipulations,” he said.

DOGE’s utility is still minimal, and that’s a fact

Thanks to Musk’s affinity for Dogecoin and his recent takeover of Twitter, it stands to reason that speculation regarding the asset’s price will run amok, at least for some more time. That being said, the fact remains that Dogecoin as a crypto project is still quite limited in its operational utility, a sentiment echoed by Daniel Elsawey, co-founder and CEO of decentralized exchange TideFi.

Taking a more holistic view of the matter, he told Cointelegraph that cryptocurrencies in the digital asset space today fall into two distinct categories: those with smart contract capabilities and those without. In his opinion, the market as a whole is moving toward the tokenization of items in our day-to-day lives, and this is what stands to tip the adoption curve of digital assets toward one side or the other. He added:

“Given that DOGE cannot directly interact with smart contracts as part of its original design, I would say that unless it’s specifically used as an option for payment, the use cases associated will continue to remain speculative.”

Lastly, given that the crypto industry is still in its relative infancy, it continues to remain heavily dependent on Bitcoin (BTC), tracing its price movements quite heavily. Moreover, volatility continues to pervade the market due to the recent downfall of crypto exchange FTX, something that will have a direct effect on the price of most cryptocurrencies in the near to mid-term. “Dogecoin is no different in this respect. There is still a lot of uncertainty surrounding the asset,” Elsawey concluded.

Recent: Banks still show interest in digital assets and DeFi amid market chaos

As we head into a future driven by a high degree of economic turbulence — across a myriad of financial sectors — it will be interesting to see how the future of Dogecoin plays out moving forward, especially as projects with limited use cases continue to be wiped out from the market seemingly with each passing day.



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Bull Market Signal? Jim Cramer Advises Crypto Investors to Sell

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The host of CNBC’s Mad Money show – Jim Cramer – said cryptocurrency investors still have time to sell their “awful” positions.

His previous advice has often been inaccurate, prompting numerous participants to anticipate a market surge after the latest comments.

Cramer’s on the Spotlight Again

During his most recent show, Mad Money’s host urged investors to cash out their cryptocurrency at all costs. He thinks “it’s never too late” to exit the market, hinting the crypto winter is nowhere near its end:

“You can’t just beat yourself up and say, ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets.”

Cramer believes the most speculative cryptocurrencies that could possibly crash to virtually zero are Ripple (XRP), Dogecoin (DOGE), Cardano (ADA), and Polygon (MATIC). 

Most digital currencies have lost a significant chunk of their valuation, with bitcoin being down nearly 65% since the beginning of 2022. In addition, investors’ interest has significantly dropped, while multiple companies experiencing liquidity issues. Former giants in the field, including FTX, BlockFi, Three Arrows Capital, and Celsius, even filed for bankruptcy.

However, the market has been through other “winters” in the past, and many digital currencies endured the turbulence, including bitcoin.

Subsequently, Cramer argued that the industry is full of “boosters” who try desperately to inflate the market with considerable financial efforts, giving an example is Tether, the company issuing USDT.

“There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air — not too different from what happened with bad stocks during the dotcom collapse.”

Jim Cramer, Source: CNBC

Cramer: a Popular Counter Indicator

The American has displayed a highly controversial stance on crypto over the years. He predicted in 2017 that bitcoin will surge to $1 million in the future but later changed his mind and labeled it an “outlaw currency.”

Cramer joined the pro-bitcoin team in 2020 again, praising the coin’s maximum supply of 21 million as a significant advantage over the traditional financial system and fiat currencies. He compared BTC to gold at the end of 2020 and even purchased some amounts of the asset when it was trading at around $17,500. 

As bitcoin was heading north, so was Cramer’s support toward it. He even requested his salary to be paid in BTC instead of fiat currency in April 2021. The recent market crash, though, has changed his vision entirely, and he has returned as a crypto critic. 

Many of his crypto predictions have been proven wrong. In September 2021, he advised investors to cash out their holdings, saying the Evergrande debt crisis in China could trigger a market crash. Bitcoin skyrocketed to an all-time high of nearly $69,000 two months later.

He also opined in January 2022 that the correction from BTC and ETH could be over, meaning investors should reconsider entering the market. Contrary to that forecast, the leading cryptocurrencies continued their downfall and are currently trading at $17,000 and $1,250, respectively, down from $47,000 and $3,700 from the beginning of the year.

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Rumors of a new native ‘Twitter Coin’ emerge while Dogecoiners remain hopeful

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Social media users are swirling around rumors that Twitter is looking at introducing its own native asset called “Twitter Coin” to be used for payments and tipping on the platform.

Some are citing the initial reports from sources such as Nima Owji, who runs an app-focused information leak account on Twitter.

On Dec. 4, he posted a screenshot of what appears to be a prototype Twitter interface showing a “Coins” option for tipping, along with a vector image showing a coin bearing Twitter’s logo.

Others have pointed to tweets from tech researcher Jane Manchun Wong, who claimed to have extracted code from a specific version of Twitter’s web app to find the same information as Owji, though the post itself and Wong’s account have since been deleted for unknown reasons. 

Jane Manchun Wong’s deleted threat: Twitter

There has also been a swarm of posts under the TwitterCoin hashtag, with many people excited but ultimately unsurprised that the social media platform could be working on new payment rails and system integrations now that Elon Musk is at the helm.

Members of the feverent Dogecoin community on Twitter and Reddit have also tried connecting the dots, with some remaining hopeful that Twitter Coin is just a placeholder name for Dogecoin, considering Musk’s long-running affiliation with the memecoin.

Speaking on a similar subject in a Dec. 4 Twitter Spaces, Musk suggested to an audience of 2.1 million listeners that he was still interested in integrating crypto with the social media platform.

“It is kind of a no-brainer for Twitter to have payments, both fiat and crypto,” he said.

Related: Ripple CTO shuts down ChatGPT’s XRP conspiracy theory

As it stands, Twitter has been gradually expanding its payment integrations over the past couple of years, and currently supports fiat tipping for a host method alongside Bitcoin (BTC) and Ethereum (ETH), which were integrated in September 2021.

Since the $44 billion takeover went through in October, Musk has overseen a host of changes to Twitter, particularly relating censorship policy, information disclosures and botting activity.





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Price analysis 12/5: SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT

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Crypto markets appear to be losing some of their recent bullish momentum, but a favorable tailwind from equities markets could catalyze a breakout in Bitcoin and select altcoins.



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