coindesk.com
Traders are pumping all things Shiba Inu after Twitter CEO Elon Musk posted a meme involving his dog Floki posing as the new boss of Twitter.
CoinDesk data shows that the price of DOGE has risen 5.4% over the past 24 hours.
Musk replaced Parag Agrawal as CEO of Twitter when his acquisition deal for the social networking platform closed on Oct. 27. While the two reportedly had a cordial relationship when they first met, after Musk became Twitter's largest shareholder, their relationship reportedly soured as 2022 dragged on. Musk has unfollowed Agrawal on Twitter, while the former CEO still follows Musk.
In December, it was reported that Musk had begun looking for a new CEO of Twitter after losing an online poll on the topic.
“I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams,” he said.
Floki Up Nearly 50%
Meanwhile, Floki, which takes its name from Musk's dog, is up 41% in the last 24 hours according to CoinGecko data.
In January, Floki's price rallied almost 100% after the Floki Inu DAO, the group behind the coin, passed a governance resolution to do a $100 million token burn.
Floki Price (CoinGecko)
The logic behind burning tokens is that it decreases supply, which subsequently adds value to each token provided the level of demand remains the same. This is sort of like a stock buy-back in the crypto world.
Will DOGE Bring a Dog Day to the Markets?
This isn’t the first time DOGE has spiked on a Musk-related tweet. In late January a report from the Financial Times that said Twitter is designing a system to permit crypto payments, sent the memecoin soaring.
A December 2022 report from blockchain analytics firm Santiment cautioned that historically, outsized gains in DOGE and other meme coins like Shiba Inu (SHIB) have been the first sign of a market-wide selloff.
During the last three months, markets have begun to recover from the depths of the FTX-induced crypto winter. By mid-January, CoinDesk reported that Bitcoin had erased its entire FTX-related decline. The market recovery has also kicked off an altcoin season with many of these coins posting double or triple-digit gains.
Bitcoin has posted a 34% gain in the last three months, while SHIB is up 40%, BONK up a staggering 533%, and Floki up 242%.
Despite the other canine coins barking at the moon, during this time period — including today's surge — DOGE is actually down 2% suggesting, if Santiment's thesis holds true, that we aren't yet at the point of a market-wide sell-off.
UPDATE (Feb. 15, 05:51 UTC): Updates throughout.