Memecoins rise up after Musk appoints his dog as new CEO of Twitter
Technology
Memecoins rise up after Musk appoints his dog as new CEO of Twitter
(Web Desk) - According to CoinDesk statistics, the price of DOGE has increased 5.4% in the last 24 hours since Twitter CEO Elon Musk tweeted a photo of his dog “Floki” as the next CEO of the social media firm.
“Twitter’s new CEO is incredible,” said the Tweet.
— Elon Musk (@elonmusk) February 15, 2023
On October 27, Parag Agarwal’s control over Twitter was terminated, and Musk was appointed as CEO in his place. They were close when they first met, but their friendship reportedly soured as Musk became Twitter’s largest shareholder. While Agrawal continues to follow Musk on Twitter, the new CEO did not respond.
Musk was said to have begun looking for a new CEO of Twitter in December after losing an online poll on the subject.
“I will resign as CEO as soon as I find someone stupid enough to accept the position!” “After that, I’ll just be in charge of the software and servers teams,” he explained.
According to CoinGecko data, Floki, named after Musk’s dog, has increased by 41% in the last day.
The price of Floki increased by approximately 100% in January after the Floki Inu DAO — the organisation that created the coin — passed a governance resolution to carry out a $100 million token burn.
It makes sense to burn tokens because it reduces supply, which raises the value of each token if demand remains constant. In the world of cryptocurrencies, this is analogous to a stock buy-back.
DOGE has risen in response to Musk’s tweet on multiple occasions. The meme coin shoot up in late January following a Financial Times report claiming that Twitter is working on a method to accept cryptocurrency payments.
According to Santiment, a blockchain analytics startup, disproportionate increases in DOGE, DShiba Inu (SHIB), and other meme-coins have historically been the first sign of a market selloff.
Over the last three months, markets have begun to recover from the crypto winter caused by FTX. According to CoinDesk, Bitcoin has fully recovered from the FTX loss. The market’s recovery has also signalled the start of an altcoin season, with many of these coins experiencing double- or triple-digit gains.
Bitcoin has increased by 34% in the last three months, while SHIB has increased by 40%, BONK has increased by 533%, and Floki has increased by 242%.
The fact that DOGE is down 2% during this period, despite other canine coins screaming at the moon (including today’s rise), suggests that assuming Santiment’s theory is correct, we have not yet reached the stage of a market-wide sell-off.
