Dogecoin (DOGE) witnessed a significant increase on Tuesday following news from an SEC filing indicating that Elon Musk’s artificial intelligence startup, xAI, had raised $134.7 million and could be aiming for $1 billion in a fundraising effort.
However, the positive momentum quickly reversed on Wednesday morning as Elon Musk clarified that xAI was not currently engaged in any fundraising activities.
Elon is raising $1B for https://t.co/4LgTqncSO1. A week ago he raised $135m from investors. Bottom line, he wants to compete with OpenAI and Anthropic.
— Gene Munster (@munster_gene) December 5, 2023
DOGE Faces Price Correction After xAI Fundraising Speculation
Dogecoin (DOGE) experienced a drop in value from $0.1057 to $0.0946, marking a 1.1% decrease in the past hour. This decline partially offset the gains from a 14% rally observed the previous day. However, DOGE has managed a slight recovery to $0.0977 at the time of writing.
Dogecoin Price Chart | Source: Coinstats
The recent fluctuations came on the heels of a 7% surge in DOGE on Tuesday, triggered by revelations in a U.S. Securities and Exchange Commission filing. The filing hinted at xAI, also known as X.AI, potentially seeking to raise up to $1 billion, having already secured $134.7 million.
DOGE’s price movements are often influenced by Elon Musk’s statements and social media posts, given his notable interest in the meme-themed cryptocurrency. Earlier in April, Musk suggested the possibility of incorporating DOGE as a payment option for Twitter Blue, the premium subscription service of the social media platform previously known as Twitter, now called X.
Tesla, another company led by Musk, has already embraced DOGE payments for merchandise purchases through its online store, further solidifying Musk’s impact on DOGE’s market dynamics.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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