It’s not clear exactly why Musk buying Twitter ignited a price rise in Dogecoin. Some analysts have speculated that the cryptocurrency’s price increased on expectations that Musk will use the Twitter platform to promote DOGE and other digital assets, and try to increase their mainstream acceptance.
Whatever the reason, the bounce higher in Dogecoin’s price was short lived and the cryptocurrency quickly fell back to earth to trade at its current level of $0.14.
In Other News…
Beyond Musk buying Twitter, there hasn’t been a lot of recent news that would act as a catalyst to propel the price of DOGE higher. Jamestown, a real estate company with national reach in the U.S., recently announced that it will accept payment in Dogecoin through BitPay integration.
The digital token also experienced a brief move higher after Fidelity announced that it will allow its customers to hold Bitcoin and other cryptocurrencies in their 401(k) retirement accounts. But beyond that, there’s been no substantial news related to Dogecoin.
Electric vehicle maker Tesla, which Musk still runs as his day job, is one of the biggest corporate buyers in the world of Bitcoin. Many retail investors hope to see Twitter adopt more cryptocurrency features once Musk is firmly in control of the social media company, something that could help cryptocurrencies gain greater acceptance. Dogecoin was started in 2013 merely as a joke by a couple of programmers, but has managed to hang around despite having no underlying utility.
Don’t Be Fooled By DOGE
Despite the recent, albeit short-lived, move higher in the price of Dogecoin, the digital coin remains a poor investment. People should not be fooled by any rise in Dogecoin. The meme coin remains one of the worst cryptocurrency investments.
Not only does Dogecoin serve no purpose, it remains a complete joke, as was intended. Investors who are serious about adding crypto exposure to their portfolio would be better served buying a more legitimate digital asset such as BTC or ETH. Twitter or no Twitter, DOGE is not a buy. #badmove.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.