From the start of the pandemic, Elon Musk has taken over the word — literally.
Every word that comes out of his mouth, whether through his strange tweets or in an interview, is held in the highest regard, and has probably caused huge shifts in both the stock and cryptocurrency market.
For example, when Musk’s Tesla disclosed in an SEC filing that they purchased $1.5 billion in Bitcoin, the popular cryptocurrency shot up 20%, with Tesla’s stock price also increasing by 2%. In addition, when Musk tweeted that he bought dogecoin for his son, it sparked a 16% surge in the “meme” token.
More recently, Musk hosted Saturday Night Live on May 8, and dubbed himself as the Dogefather, also causing Dogecoin to shoot up tremendously before SNL, but crashing afterward, after Musk called it a “hustle.” This immediately sent the coin plunging more than 30%.
Musk’s ability to shift the market is remarkable, yet dangerous, as the amount of power that he has can cause billions of dollars to change hands.
Recently, the latest Elon Musk effect is the cryptocurrency market blow-up, with hundreds of altcoins gaining popularity after thousands of retail investors started taking positions, hoping to make a quick buck. The main name at the head of the blow-up is Dogecoin or ticker symbol DOGE.
Dogecoin was created as a joke in 2013 by software engineers Billy Markus and Jackson Palmer to make fun of the wild speculation in cryptocurrencies at the time. Dogecoin, Bitcoin and other cryptocurrencies are decentralized networks based on blockchain technology — a distributed ledger enforced by a disparate network of computers, according to Investopedia.
As a matter of fact, Dogecoin exists as an offshoot of the original blockchain that bitcoin is on, but it is not as secure as Bitcoin, nor is there a cap on the number of dogecoins that can exist, as is the case with Bitcoin.
Dogecoin has surged over 16,000% just in 2021 and there are many reasons for the astronomical rise in price.
In January 2021, Dogecoin surged 800% after backing from celebrities Elon Musk, Snoop Dogg and Gene Simmons, causing it to hit a price of 8 cents. In March 2021, Dallas Mavericks owner Mark Cuban announced his NBA team would allow purchasing tickets and products with Dogecoin; within two days, Cuban had declared his franchise had become the top Dogecoin merchant, having carried out 20,000 transactions.
All of this celebrity backing and attention had drawn major interest to the “meme” coin, and retail investors started piling on loads of cash, only causing the coin to go even higher in price.
With Dogecoin’s cult-like following, celebrity backing and Elon Musk’s constant tweets, it is no wonder that Dogecoin has been surging recently. Musk even recently tweeted that he would be launching satellite Doge-1 to the moon next year allowing the coin to literally go to the moon and maybe the price of the “meme” coin will follow.
All in all, Dogecoin has the potential to be a life-changing investment, but only for those who understand that it started off as a meme and that Elon Musk holds the coin’s future in his very hands.
Invest with caution.