- April 07, 2022
After Elon Musk joined the Twitter board of directors, Dogecoin rallied once more.
The announcement comes just one day after Elon Musk revealed that he owns 9.2% of Twitter, making him the company's largest individual shareholder.
Following Twitter's (TWTR) announcement of Elon Musk as the newest member of its board of directors, Dogecoin (DOGE) is up 11%, according to Messari statistics.
Musk agreed to limit his ownership in Tesla to 14.9 percent from the current 9.2 percent as part of the deal to join the board. Musk and Twitter CEO Parag Agrawal exchanged tweets Tuesday morning, expressing their enthusiasm for working together.
"It became evident to us in recent conversations with Elon that he would offer enormous value to the board," Agrawal says.
"I'm excited to work with Parag and the Twitter board to deliver big enhancements to Twitter in the coming months!" Musk said.
On Musk/Twitter-related news, dogecoin has seen a second rise in two days. Despite the fact that Monday's rise was swiftly reversed, DOGE has been steadily climbing, reaching $0.16 for the first time in two months.
Musk, the CEO of Tesla (TSLA), has been promoting dogecoin in recent months, even enabling DOGE to be accepted as payment at Tesla's supercharging stations and online goods store. Musk, who is now the largest individual shareholder in Twitter and a board member, could push for DOGE payments to be integrated into the social media company's platform in some way.
That is unlikely, according to Bob Iaccino, chief strategist at Path Trading Partners and co-portfolio manager at Stock Think Tank. "It's wishful thinking on the side of dogecoin investors," Iaccino remarked.
"Assuming anything, his position on Twitter's board makes it more difficult for him to utilise Twitter (if we presume he was doing so on purpose) to artificially inflate the price of anything." If he does that, he puts himself in a lot more danger of regulatory action."
"It's possible that advertisers will be able to pay DOGE for commercials and other usage on Twitter," said Tomer Nuni, Kryptomon's Chief Marketing Officer. "When Tesla announced the possibility to pay for its items with DOGE, we saw the same thing happen. So it's possible that Musk's businesses and stakeholdings, like Tesla, may begin to accept cryptocurrency."
This week's activities, as has become the Tesla CEO's habit, may already have him on the Securities and Exchange Commission's radar. According to regulatory filings, Musk officially reported his ownership of more than 5% of Twitter on April 4 by filing a form 13G with the agency. The form, on the other hand, specifies that the individual purchasing the securities is doing so "not with the intent of changing or influencing the issuer's control," which would include joining the board of directors.
If a buyer of stock aspires to become an activist or join the board of directors, he or she must file a form 13D stating their intentions.
"It's possible his securities lawyers believe they've discovered a smart loophole that allows him to use the abbreviated form," one lawyer said on Twitter.
Prior to this week's announcement, Dogecoin had been enjoying a strong month, and is now up 30.6 percent in the last 30 days, according to statistics.