Dogecoin (DOGE), cryptocurrency’s longest running joke, popped to the top of the headlines again. Easily the most light-hearted coin in the top 100, Dogecoin recently ran a poll through their Twitter account. The poll asked which crypto-tangential celebrity should be appointed CEO of Dogecoin. Tesla’s Elon Musk won the poll by a landslide, prompting the tech mogul to respond directly. Musk commented that ‘Dogecoin might be my fav cryptocurrency.’
Both Dogecoin and Musk were clearly joking. Despite this, the interaction had a considerable impact on the market. Dogecoin spiked in value after Musk’s comment, as the crypto-sphere latched onto his continued interest. Although originally intended as a joke, Dogecoin’s use as a tipping medium on social media helped propel the cryptocurrency to relevance. Actions such as the interaction with Musk help leverage the original humorous intent to financial success.
Elon Musk and Cryptocurrency
Although Elon Musk seems to follow cryptocurrency, he has stated in the past that he owns very little crypto holdings. At least as of last year, he owned only 0.25 BTC – given to him by a friend. Despite this, he is a relatively outspoken supporter of the technology. Recently he commented that he believes paper money is on the way out. Recent events prove that to be true, regardless of the spread of cryptocurrency. Even traditional fiat is falling away in favor of digitally-held funds.
Despite his status as one of the top technology entrepreneurs, Elon Musk maintains a relaxed persona. He famously caused a stir on an appearance with Joe Rogan, where the billionaire smoke marijuana. As such, his tongue-in-cheek Dogecoin endorsement does not come as much of a surprise.
However, Elon Musk has been the subject of several controversies, particularly surrounding Tesla, Inc. (NASDAQ: TSLA) and his use of social media. Musk’s now-infamous “funding secured” tweet proclaiming Tesla was on the verge of being taken private at $420 per share, sparked action from the U.S. Securities and Exchange Commission (SEC). The SEC-Musk showdown continues to proceed, as a federal judge recent told both parties to essentially work it out.
An April Fool’s Day Pump
In perhaps the most perfect coincidence of the year, Dogecoin rallied 20% on April 1st. Adding millions of US dollars-worth of value in several hours, it continues to hold this level after several days. If the spike is a prank, it came at an impressive cost. The days following April 1st saw the coin continue to rise – settling in at 57 Satoshis as of this article.
Dogecoin remains a light point in a market that is often filled with dark news. Between philanthropy and humor, the coin remains a perfect ambassador to the general public – even if this makes it harder to take it seriously.
Article By: Adam Stone