Musk has an extensive track record of engaging with Dogecoin fans through social media. His frequent tweets about it often cause it to spike in value; last month alone, when Twitter changed their logo briefly to feature a Shiba Inu image it caused further price appreciation.
Why would a billionaire care about such a joke cryptocurrency? He runs several companies including SpaceX and Tesla which specialize in making rockets and spacecraft respectively.
Founder Elon Musk
SpaceX and Tesla founder Elon Musk often tweets about cryptocurrencies, with his tweets often having an effect on their prices. For instance, when talking about Dogecoin he has often used phrases such as “shiba inu”, which may have led to its appreciation in price.
Elon Musk has long been known for his eccentric behavior and canon of controversy and scandal. Born in South Africa and migrating to Canada as an immigrant at 17-years-old, he attended Queen’s University Kingston Ontario before transferring to University of Pennsylvania where he earned bachelor degrees in physics and economics respectively. Additionally, Elon founded PayPal (an electronic payment system) as well as Zip2 Corporation which was eventually purchased by Compaq in 1999.
Musk has his hands in many businesses, such as The Boring Company, Neuralink and OpenAI. Known for taking risks and pushing technological boundaries forward, his tweets often have an effect on digital assets’ prices; some investors even filed suit against him over his promotion of Dogecoin for profit; however he denies these accusations and does not advise investing in any cryptocurrency.
Dogecoin prices have fluctuated rapidly in its first month on the market and investors should proceed with caution when investing. Partly due to Tesla and SpaceX CEO Elon Musk using Twitter to promote it and encourage others to use Dogecoin as a tipping method on TikTok creators, its prices have seen dramatic swings between rising and falling fast.
Dogecoin has attracted the interest of some speculators looking to take advantage of its price volatility. One tweet from Tesla and SpaceX CEO Elon Musk included an image depicting Shiba Inus, the coin’s logo. As a result, its value increased 30%.
Unknown to everyone is whether this tweet was created with the intention of increasing Dogecoin prices; nevertheless it caused an enormous surge in trading volume and short-lived price increase before quickly retreating again.
Musk encouraged people to use Dogecoin in his tweet as a means of helping TikTok creators make more money, alluding to an online video which showed one such creator asking viewers for some in exchange for a dance video she created herself. Trading around endorsement tweets is common within crypto circles; however experts caution that simply due to having high-profile figures promote a cryptocurrency doesn’t guarantee its worth or make it an appropriate investment; buying into social media hype may result in significant losses.
Elon Musk has long been an admirer of Dogecoin, the meme coin with a Shiba Inu dog as its mascot. He even called this cryptocurrency “the future of currency”. Recently, Elon replaced Twitter’s blue bird logo with one featuring Dogecoin; this caused a 20% spike in price but quickly plummeted back down – currently trading at $0.07 per coin.
Though many believe Elon Musk will make Dogecoin the dominant cryptocurrency on the market in time, others doubt this is likely. With many bigger priorities on his mind such as launching SpaceX Starship into orbit and his other businesses to pursue, such as investing more time into Dogecoin may not be feasible.
However, he still frequently mentions meme coin and this has an upward effect on its price; though not enough to push it past $10 mark.
Elon Musk has often expressed his appreciation of Dogecoin because of its humor and meme-esque qualities, supporting it by accepting Tesla to accept payment with it as well as creating perfume that can be purchased with it. In an interview with Wall Street Journal CEO Council he reiterated this sentiment; as a result its price has since dropped below the $0.10 support level.
Due to Musk’s interest, Dogecoin prices have skyrocketed. He has tweeted multiple times about it, prompting an increase in price with each tweet. Furthermore, he mentioned it on an episode of “Saturday Night Live”, possibly pushing up the value even more.
Dogecoin’s price surge has been propelled by strong support from social media users on platforms like Twitter and Reddit. In January 2021 alone, its value skyrocketed 800% in 24 hours thanks to Reddit group r/SatoshiStreetBets; speculation increased further due to speculation that billionaire Elon Musk, founder of Twitter, might integrate Dogecoin as payment system on Twitter’s platform; with several million daily users likely using meme coins like Dogecoin on this platform alone could send its value through the roof!
However, it’s essential to remember that just because a celebrity mentions a crypto or its price increases doesn’t indicate it should be invested in. Cryptocurrencies are notoriously volatile investments that should only be undertaken with funds you can afford to lose; too much hype should not be fed into. When investing celebrity endorsements it is best only invest what can afford as any single tweet from any one individual can have drastic ramifications on your money just like it happened with Musk.