Dogecoin Soft after Elon Musk Suggests its Use on Twitter, Refuses Seat at the Board

Elon Musk Twitter Stake

The prolific CEO of EV maker Tesla became Twitter's largest shareholder with an around 9% stake, which was revealed last week on a filing with the US Securities and Exchange Commission (SEC). ^[1]

Twitter later announced that Mr Musk would be appointed at the firm's Board of Directors until 2024, probably in an effort to put a cap in his ownership stake. The agreement stipulated that he will not become the beneficial owner of more than 14.9% for as long as he is serving on the board and for 90 days thereafter. ^[2]

The cryptocurrency had rallied on the news, as Mr Musk is known for owning Dogecoin and for often tweeting around it and other cryptocurrencies. ^[3]

Elon Musk the Disruptor

As we had noted in our latest StockWatch, the head of Tesla and SpaceX is an agent of change and an industry disruptor and his involvement in Twitter can lead to changes in the social media platform. He immediately asked his 80+ million followers to vote on whether they would like an edit button and went on over the weekend to propose a series of changes.

His proposals included, among other things, a price cut in the Blue subscription service and he also suggested an option to pay in Doge ^[4]. This is the latest of his Doge-related tweets, while EV king Tesla accepts payments in Dogecoin for merchandise ^[5].

Musk's Refusal to Join Twitter's Board

Despite the previously announced appointment of Tesla's CEO to Twitter's Board of Directors, CEO Parag Agrawal announcement today that Mr Musk decided not to join Twitter's board after all. Mr Agrawal also noted that "I believe this is for the best" and that the firm "will remain open to his input". ^[6]

This development allows him to bolster his share in Twitter, but could restrict his influence, given that he will not have a seat at the Board. On the other hand, he is Twitter's biggest shareholder, he has more than 80 million followers in the platform on which he is very outspoken and he definitely did not lose any time proposing changes.

DOGE/USD Analysis

The cryptocurency gapped higher after Mr Musk suggested its use as a payment method on Twitter, but quickly erased those gains, as news of his refusal to join the firm's board emerged, while US Dollar strength also weighs.

This makes it vulnerable to fresh monthly lows (0.1314), but a steeper decline towards and 0.1251 will likely require new catalyst. Despite trading in negative territory, GOGE/USD comes from a profitable week and has the ability to push towards 0.1605, although the April highs (1.1802) appear distant at this point.