Elon Musk's Twitter Reverts to Blue Bird, Causing 10% Dip in Dogecoin

The value of Dogecoin, the meme-inspired cryptocurrency, has been impacted by recent events involving Elon Musk and Twitter. On Monday, Twitter changed its home button from the blue bird to Dogecoin's Shiba Inu dog mascot, causing a surge in the cryptocurrency's value by as much as 30%. However, when Twitter reverted back to its recognizable blue bird, Dogecoin lost nearly 10% on the daily charts.

Musk has been a vocal supporter of Dogecoin since 2019 and frequently mentions it in his conversations. He refers to it as the "people's currency" and his "favorite cryptocurrency." He has also confirmed that he owns no other meme coins except for Dogecoin, in addition to Bitcoin and Ethereum.

The Doge community was optimistic about an upcoming payment integration announcement, but reports suggested that Musk's action could result in the securities regulator ramping up enforcement action, leading to short-lived value gains. Musk's legal troubles are also impacting Dogecoin's value, as he is being sued for allegations that he ran a pyramid scheme to help Dogecoin. The lawsuit is for $258 billion, and Musk has requested its dismissal from the Manhattan court. He has defended his tweets and suggested that Dogecoin is not a security.

The Securities and Exchange Commission (SEC) has mostly policed the market through enforcement action. Tokens that the agency deems "unregistered securities" face tightening regulations and billions in fines. SEC Chair Gary Gensler has expressed that the sector can be supervised using existing rules, despite cryptocurrency advocates arguing that the market requires a new regulatory framework and that digital assets cannot be treated like stocks.

Dogecoin's market cap is over $11 billion at the time of writing, and its price is hovering close to $0.08. While events involving Musk and Twitter have impacted its value in the short term, the cryptocurrency's community remains optimistic about its future.