Dogecoin — the cryptocurrency coin that Tesla CEO Elon Musk has often celebrated — recently saw a spike in value after news broke that Musk has offered to buy Twitter.

Catch up quick: Last week, Musk bought a 9.2% stake in Twitter, becoming Twitter’s largest stakeholder, which I reported for the Deseret News.

What he said: “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he said in a filing with the Securities and Exchange Commission.

What’s happening: In the hours after the news, Dogecoin saw a 5.4% rise in value, per Crypto Briefing.

  • The coin had a $0.14 to $0.17 increase in value due to “rumors that it could be integrated with the social media platform,” per Crypto Briefing.
  • In a previously-deleted post, Musk suggested Dogecoin could be used to pay for Twitter Blue, a paid premium service offered by the company, per CNBC.
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The bigger picture: Musk has been a big proponent and champion of Dogecoin for more than a year now.

  • Musk’s tweets have created spikes in value for Dogecoin since last year. For example, he has suggested Tesla should accept Dogecoin.
  • The meme-based cryptocurrency relies on social media hype to earn value, as I wrote for the Deseret News. Musk’s tweets play a huge role in that.
  • “Tweets from Musk and surging interest from a wave of amateur investors fueled a speculative frenzy in the cryptocurrency earlier this year, driving its price higher,” per CNBC.
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