A Comprehensive Analysis by David Sacks, Elon Musk's Time at DOGE and the Twitter Acquisition

Elon Musk has a long history of causing controversy, daring actions, and decisions that changed the market. From Tesla and SpaceX to his highly publicized acquisition of Twitter (now X), Musk has repeatedly demonstrated his ability to influence industries, stock prices, and even internet culture. One of the most fascinating aspects of his career has been his relationship with cryptocurrency, particularly Dogecoin (DOGE), and how it compares to his takeover of Twitter.

David Sacks, a well-known venture capitalist who used to work for PayPal and has known Musk for a long time, has said that Musk's involvement with Dogecoin is like buying Twitter. Sacks says that in both instances, Musk's unique strategy for leveraging influence, market psychology, and public sentiment is evident. In this article, we will compare and contrast Musk's time with DOGE and his Twitter saga with Sacks' comparison. We’ll examine the financial, cultural, and strategic implications of both events and what they reveal about Musk’s leadership style.

1. Elon Musk A and Dogecoin: the movement-starting meme. Musk's early partnership with DOGE Dogecoin was created in 2013 as a joke in response to the well-known Shiba Inu meme titled "Doge." Despite its humorous beginnings, the cryptocurrency gained cult status. Elon Musk began tweeting about DOGE in 2019, calling it his "favorite cryptocurrency" and playfully dubbing himself the "Dogefather."

Price Increases: Whenever Musk mentioned DOGE, its price increased. His tweets had a direct effect. Mainstream Attention: DOGE went from a meme to a top 10 cryptocurrency by market cap.

Community Growth: The "Doge Army" became a loyal following, much like Tesla and SpaceX fans.

B. Market manipulation or harmless amusement: The DOGE Effect Critics accused Musk of market manipulation, arguing that his tweets artificially inflated DOGE’s value. However, supporters saw it as a mix of humor and genuine belief in DOGE’s potential as a "people’s crypto."

Key moments:

"DOGE-1 Mission to the Moon" – Musk endorsed a SpaceX satellite mission funded by DOGE.

DOGE soared prior to "The Dogefather" on Saturday Night Live (2021), but it plummeted after Musk referred to it as a "hustle." Tesla Merch for DOGE – Musk allowed Tesla merchandise purchases using DOGE, further legitimizing it.

C. The Point of View of David Sacks: Musk as a Market Mover David Sacks has noted that Musk's DOGE tweets were a masterclass in influence. Musk, in contrast to conventional CEOs, moved not only the stock of his own company but also an entire cryptocurrency. Sacks argues this foreshadowed Musk’s approach with Twitter: using his platform to shape narratives, drive engagement, and sometimes provoke chaos.

2. The Twitter Takeover: A $44 Billion Gamble

A. In April 2022, Musk acquires a 9.2% stake in Twitter, making him the largest shareholder. April 14: Twitter offers Musk a board seat, which he initially accepts, then rejects.

On April 25, Musk makes a $44 billion offer to completely acquire Twitter. Musk makes an effort to pull out in July, citing fabricated accounts. October: After legal battles, Musk finalizes the deal.

B. Parallels to DOGE: Influence, Volatility, and Backlash

Sacks highlights several similarities between Musk’s DOGE era and his Twitter takeover:

Market Impact: Just as DOGE surged on Musk’s tweets, Twitter’s stock swung wildly based on his statements.

Public Spectacle: Both DOGE and Twitter became cultural phenomena, driven by Musk’s online antics.

Regulatory Review: In both cases, the SEC looked into Musk's tweets. Community Divide: Just like DOGE had enthusiastic supporters and skeptics, Twitter's user base is divided over Musk's leadership. C. Key Differences

While both situations involved Musk’s influence, there were major differences:

Scale: Twitter was a $44 billion acquisition; DOGE was a meme coin.

Control: Musk fully owns Twitter; he merely influenced DOGE.

Outcome: Twitter’s value dropped post-acquisition, while DOGE remains a cult favorite.

3. Sacks’ Analysis: What These Episodes Reveal About Musk

David Sacks, who has known Musk since they worked together at PayPal, claims that DOGE and Twitter reflect Musk's fundamental strategies in the following ways: The Importance of Narration Musk recognizes that perception is the driving force behind reality. He turned a joke into a serious asset with DOGE. With Twitter, he framed the acquisition as a "free speech" mission.

B. Disrupting Established Systems Whether mocking Wall Street with DOGE or dismantling Twitter’s content moderation policies, Musk thrives on challenging norms.

C. High-Risk, High-Reward Moves

Both DOGE and Twitter were gambles—one with minimal financial risk, the other with billions at stake.

D. The Role of Loyal Followers

Musk’s fanbase (Tesla investors, DOGE holders, Twitter users) gives him leverage that few executives have.

4. A. The Implications and Lessons Learned DOGE’s Legacy

Still a top cryptocurrency.

It has been demonstrated that memes can affect actual financial movements. B. Twitter’s Future

Struggles with revenue, advertisers, and debt.

Musk’s vision of an "everything app" (X) remains uncertain.

C. Musk’s Reputation

He is viewed as a visionary by some, while reckless billionaire by others. His ability to sway markets is unmatched—for better or worse.

The End: A Story of Two Musk Ventures David Sacks’ comparison between Musk’s DOGE era and his Twitter takeover reveals a pattern: Musk thrives on disruption, spectacle, and leveraging his influence in unconventional ways. Whether pumping a meme coin or overhauling a social media giant, Musk operates by his own rules.

The key takeaway? Elon Musk invests in movements as well as businesses and cryptocurrencies. And whether those movements succeed or fail, the world can’t stop watching