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Tesla boss remains Dogecoin fan

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For Elon Musk, Dogecoin (DOGE) still has great potential as a cryptocurrency. The Tesla boss wrote that down again on May 13th Twitter. Musk is once again sending a surprisingly positive signal to the slipping crypto market.

The tweet was in response to Dogecoin co-founder Billy Markus. Previously, he had reaffirmed his sympathy for the memecoin. He likes the coin so much because the token knows how stupid the project actually is.

I like that something stupid can also have a use and be successful

added Billy Markus, co-founder of Dogecoin.

Rise and Fall of the Dogecoin

Dogecoin price has risen for the time being in recent weeks following the news of Musk’s $44 billion bid to take over Twitter. The crypto scene apparently expected Musk to embed DOGE into Twitter and potentially use it for payments on the platform.

However, the meme cryptocurrency then plunged lower along with the rest of the market. Earlier this week, the price fell below 10 cents. Dogecoin is currently trading at just $0.085.

Why does Musk see potential

Musk has been tossing memes of all kinds for years, regularly taking a positive stance on Dogecoin, which meme fans revere for its built-in “uselessness.” Musk is now reiterating on Twitter that the coin isn’t all that useless, but could very well act as a currency. The main reason for this: The inflationary mechanism that constantly increases the number of tokens and thus creates incentives to actually trade with the cryptocurrency. Because hodln is more worthwhile with deflationary crypto values, according to Dogecoin supporters.

However, the Tesla CEO has previously expressed doubts as to whether Dogecoin will ever be able to replace fiat currencies.

Added to this is the praise from Robinhood-Chief Vlad Tenev. He claimed that DOGE was a much cheaper alternative to the popular Card Networks. However, in order to achieve broader acceptance, the memecoin’s block time must be reduced to ten seconds.

But the Tesla boss is also making headlines away from memecoins.

Twitter purchase again on the brink

Because the negotiations between Twitter and Musk are in danger of tipping over after Musk criticized the many fake accounts in the social network. He only wants to buy if it is checked whether less than 5 percent of all accounts are fake or spam accounts. Musk says removing spam bots on the platform will be his number one priority following his successful takeover of the social network.

Shortly after the uncertainties surrounding Musk’s Twitter takeover were announced, the social network’s stock slipped by over 20 percent and followed the negative price trends in the crypto and tech industry.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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