Dogecoin lost nearly 10% on the daily charts after Elon Musk-led Twitter reverted its home button from the meme coin’s Shiba Inu dog mascot to the company’s recognizable blue bird.
On Monday, the substitution of Twitter’s well-known bird with Doge’s meme-inspired logo significantly boosted Dogecoin’s value by as much as 30%.
SEC’s Regulatory Action in the Crypto Sector
Dogecoin’s emblem on Twitter generated quite a buzz and led users to speculate whether it was an April Fool’s Day prank or whether hackers had gained access to the platform.
The rest of the Doge community became optimistic about an upcoming payment integration announcement. However, reports claimed that Elon Musk’s action could result in the securities regulator ramping up the action, leading to short-lived value gains.
The billionaire has been bringing up Doge in his conversations since 2019, knowing its “Musk Effect” on its price. The beloved DogeFather had earlier confirmed that he owns no other memecoin, except DOGE, in addition to Bitcoin and Ethereum.
Billionaire’s Legal Troubles and Dogecoin’s ‘Musk Effect’
The new CEO of Twitter frequently refers to Doge as the “people’s currency” and his “favorite cryptocurrency.” Doge had also surged in response to the news that Musk would present “Saturday Night Live” in 2021.
Meanwhile, Dogecoin’s market cap is over $11 billion at the time of writing. Its price is hovering close to $0.08. Dogecoin lost nearly 10% on the daily charts after Twitter ditched the Dogecoin logo.
The hourly chart shows that the memecoin continues to remain muted.
The SEC has mostly policed the market through enforcement action. Tokens that the agency deems “unregistered securities” face tightening regulations and billions in fines.
Meanwhile, Elon Musk is being sued for $258 billion for allegations that he ran a pyramid scheme to help Dogecoin. Reuters reported that Musk requested the lawsuit’s dismissal from the Manhattan court at the beginning of the month. Along with defending his Tweets, Musk’s legal counsel also suggested that Dogecoin is not a security.
SEC Chair Gary Gensler has often expressed that the sector can be supervised using existing rules. This is despite cryptocurrency advocates arguing that the market requires a new regulatory framework and that digital assets cannot be treated like stocks.
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