Dogecoin’s price has plummeted by over 10% today, dropping to a price of just $0.07. The plunge comes in response to Elon Musk’s latest tweet asking whether he should step down from his position as Twitter’s CEO.
Recently, crypto and broader tech markets have been significantly battered by rising fears of a recession coupled with a number of notable crypto firms going bankrupt, including once the second-largest crypto exchange FTX.
Bitcoin, Ethereum, and all major indexes, including the S&P 500, NASDAQ, and Dow Jones Industrial Average, also declined about 1-2 percent today. A fourth straight day of declines for indexes has brought them to their lowest points in six weeks.
Since the billionaire bought Twitter in October, the price of the original meme coin has been on the rise. When Elon Musk acquired the social media platform on October 27, DOGE was valued at $0.07. By November 1, it had reached $0.14, and the price of the coin has fluctuated up and down ever since, as CoinGecko data shows.
This year’s best Dogecoin price remains far below the price in May 2021, after Musk’s appearance on Saturday Night Live, when the price reached $0.73 and hit its highest point in history. However, the coin’s value had fallen over 90% by June 2022.
The digital coin was created in 2013 as a joke by Jackson Palmer, but it found a surprising champion in Elon Musk, who has been praising it on social media for the past few years. However, a heated exchange of insults and barbs has taken place between Palmer and Musk on social media since Palmer left the project in 2015.
A leak from June 2022 indicated Musk wanted to integrate a crypto-payment system into Twitter, and rumors suggested that he would use Dogecoin, Musk’s beloved cryptocurrency. According to reports, Musk shelved those plans after purchasing Twitter.
Musk loves Dogecoin, yet Tesla hasn’t invested in the meme coin and holds $218 million in Bitcoin instead.
The lawsuit regarding Musk’s purchase of Twitter revealed a number of communications between Musk and others, namely Jack Dorsey and FTX ex-CEO Sam Bankman-Fried, regarding potential development and investment.
According to Musk, the $3 billion investment deal proposal of Bankman-Fried activated his “BS detector.”
Musk’s leadership style has been questioned by many, including Ethereum founder Vitalik Buterin, who pointed out that Musk’s banning of accounts, for example, one that tracked the location of Musk’s private jet, could lead Twitter down the “path of authoritarianism.”
In recent months, Musk has used Twitter polls to ask the community its opinion about Twitter policies, such as restoring banned accounts, and now whether he should remain CEO. Musk says he would adhere to the poll results — if so, the end result could potentially cause Dogecoin to fall dramatically.