Tesla and SpaceX CEO Elon Musk has once again expressed bullish views on Dogecoin (DOGE), stating that it "has potential as a currency" despite a broader crypto market downturn. Meanwhile, his high-profile $44 billion acquisition of Twitter has been put on hold, pending verification that spam and fake accounts represent less than 5% of users. Musk emphasized he is still committed to the acquisition.
Musk Doubles Down on Dogecoin
In a tweet responding to Dogecoin co-creator Billy Markus, Musk affirmed that DOGE "has potential as a currency." Markus had earlier commented that he likes the meme cryptocurrency because "it knows it is stupid."
Known in the crypto community as the "Dogefather," Musk has long championed Dogecoin, calling it "the people's crypto" and the best cryptocurrency for transactions, while viewing Bitcoin as more suited for a store of value. He first expressed interest in Dogecoin in April 2019, tweeting that it might be his favorite cryptocurrency. Musk has also disclosed that he personally holds Bitcoin, Ethereum, and Dogecoin.
Twitter Deal Hits a Snag
Musk offered to buy Twitter for approximately $44 billion, an offer the social media company accepted. However, on Friday, May 13, 2022, he announced that the deal was temporarily on hold, tweeting: "Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users." He later added that he remains committed to the acquisition.
One of Musk's primary concerns regarding Twitter has been the proliferation of cryptocurrency spam bots, which he described as the "single most annoying problem on Twitter." Shark Tank star and Dallas Mavericks owner Mark Cuban suggested using Dogecoin as a solution to the spam bot issue. Musk responded that it was "not a bad idea." He has also hinted that Dogecoin could be accepted for Twitter Blue, the platform's premium subscription service.
Implications and Outlook
Despite Dogecoin's price falling amid the broader crypto sell-off, Musk's continued endorsement has bolstered community sentiment. Analysts suggest that if Twitter were to integrate Dogecoin for payments or spam mitigation, it would significantly enhance the cryptocurrency's real-world utility. However, the ultimate fate of the Twitter acquisition remains uncertain, pending the social media company's provision of detailed user data to verify Musk's concerns about spam accounts.