From Blue Bird to Shiba Inu: Dogecoin Price Spikes Following Twitter Logo Change
On the evening of April 3rd, Elon Musk updated the Twitter logo by replacing the famous blue bird with an image of a Shiba Inu dog, which has become the symbol of Dogecoin (DOGE). This move caused a coin price spike of over 30% - DOGE reached a high of $0.1046 compared to approximately $0.086 prior to the logo change. Musk has repeatedly referred to Dogecoin as his favorite cryptocurrency, and his comments in the past have triggered similar price swings
Musk who is often referred to as an unofficial Dogecoin ambassador, responded to the change on Monday afternoon by tweeting, "as promised," with an image of a year-old conversation in which another user recommended that Musk "just buy Twitter" and "change the bird logo to a doge."
Musk has a history of using Twitter to troll both his supporters and critics. The doge logo appeared on the site two days after Musk asked a judge to dismiss a $258 billion racketeering lawsuit accusing him of running a pyramid scheme to support Dogecoin and inflate its price by "over 36,000% in two years and then letting it crash."
Musk's lawyers filed a motion to dismiss the lawsuit, stating that "There is nothing illegal about tweeting support for a legitimate cryptocurrency." Reuters reported that Musk's lawyers argued that the suit was a "fanciful work of fiction" and that his tweets about Dogecoin were merely "innocuous and often silly."
Musk's recent decision to alter Twitter's logo is likely a bold attempt to troll, energize his supporter base, and make a statement. Nonetheless, Musk has used his Twitter account even before he acquired Twitter, to quickly inflate the value of Dogecoin on numerous occasions.
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The price of Dogecoin is often volatile, but it had risen above 30% in the past 24 hours. At this point, it is hard to predict whether this increase will be sustainable, given that Dogecoin is still considered a niche coin and previous price spikes resulting from Musk's tweets have not been long-lasting.