Hoskinson has extended the invitation for Dogecoin to join Cardano as a sidechain.
Rising to a six-month high, DOGE has replaced Cardano’s native ADA token as the sixth-largest cryptocurrency in the world. Elon Musk, the CEO of Tesla seems to be supporting DOGE after completing the Twitter acquisition. Musk previously advocated DOGE as a way to tax users for their tweets, and stop spam and Twitter bots.
Elon Musk’s initiatives have previously fueled Dogecoin’s price momentum. Musk was sued for $258 billion in damages in June 2022, for allegedly running a pyramid scheme to fund Dogecoin, according to the suit. Charles
Hoskinson, Founder of Cardano, Reacts
Hoskinson, the founder of Cardano, tweeted that, “Now that Twitter is in the hands of @elonmusk, I can see a real possibility that DOGE will somehow merge with the platform.”
Such announcement was received with mixed feelings. There were many DOGE enthusiasts who, on the one hand, expressed excitement over the possibility that the cryptocurrency may merge with Twitter.
On the other hand, other Cardano investors were apparently upset that Hoskinson is advocating for DOGE instead of ADA. They asked Hoskinson to push ADA to merge with Twitter.
Hoskinson has extended the invitation for Dogecoin to join Cardano as a sidechain. He says it’s ready to migrate at no cost and will be able to incorporate smart contracts.
Elon Musk, Twitter, and His Influence on Cryptocurrencies
Musk’s relationship with Dogecoin has been going on for quite some time and has several episodes. He once joked about being the CEO of the cryptocurrency, offered help to the project’s developers, and in a sketch on the popular Saturday Night Live comedy show, mocked DOGE and called it “a scam.”
On more than one occasion, his messages on Twitter or statements in some other way have shown his influence on the market. His words have moved the price of Dogecoin, Bitcoin, or even another meme cryptocurrency, Shiba Inu, on many occasions. His messages and that proven influence, although diminished over time, even led to accusations against him for allegedly manipulating the market.
In recent days, Musk changed his description on Twitter to define himself as head of the social network (“chief twit”), and this Wednesday, October 26, he visited the company’s headquarters in San Francisco, United States, just days to specify the acquisition of the social network.
Consequently, DOGE, which had already been experiencing a rise in its price pushed by the general recovery of the market, had a rebound of more than 15% on Wednesday, according to data from CoinMarketCap.
Elon Musk said last year that Dogecoin could be used to buy Tesla and Starlink assets. It caused the price of Dogecoin to rise by 17%.
However, not all of Musk’s observations led to an increase in the value of Dogecoin. In May 2021, Musk claimed that Dogecoin was his “hustle and bustle” at a comedy concert in the United States. The observations caused the price of Dogecoin to drop by 35%.
What exactly Musk intends to do with Dogecoin is unknown. This allows speculation and price volatility to continue unabated.
By Audy Castaneda
