SINGAPORE (Reuters) – No kidding. Elon’s acquisition of Twitter by his mask has breathed new life into the sails of Dogecoin, the meme cryptocurrency for which he rose to fame.
Dogecoin price doubled after Tesla big shot completion $44 billion deal. It was trading at about $0.07 until Oct. 27, when Musk announced his ownership by tweeting, “The bird is free.” After 5 days, it was $0.16.
It may not sound like a big deal, but according to data platform CoinGecko, it has given the highly volatile cryptocurrency a market value of $21 billion.
Not bad for a coin created as a “joke” to satirize wild speculation in the crypto market and named after the Shiba Inu internet meme.
“Trading Dogecoin around Elon’s tweets has become a lucrative form of speculation,” said Matthew Dibb, COO of Stack Fund, a Singapore-based crypto investment manager. said.
Musk has indeed played a major role in the rise of Dogecoin since it was casually launched by two software engineers in 2013. His tweets expressing his support for Dogecoin, including what he called “the people’s crypto,” helped its price soar. About 4,000% in 2021.
Crypto watchers said the latest price spike following the Twitter deal was fueled by investor bets that Musk would make Doge part of the platform’s payment system.
“There is a lot of speculation that Twitter will provide a testbed for doge adoption and experimentation with different uses,” Dibb added.
DOGE AND SHIB
Dogecoin has since lost some gains and hovered around $0.12, making it the eighth largest cryptocurrency with a market capitalization of around $16 billion, according to CoinGecko.
The so-called memecoin peaked at $0.63 in May last year, but has since been squashed along with other prominent crypto assets such as Bitcoin and Ether due to a macroeconomic downturn and investor apathy towards riskier markets. was Even after the recent rise, doge is down 57% in the last 12 months.
Nevertheless, cryptocurrency market news website Coindesk said in its October CoinDesk Market Index that doge was the top performer among 150 digital assets as its price doubled. rice field.
According to CoinMarketCap, the company had a 1% share of the $1 trillion global cryptocurrency market capitalization in the year to the end of October, a fraction of Bitcoin’s 39%. It is currently 1.58%.
The Doge has the same Japanese dog breed motif as the Doge, and has launched other dog-themed coins, centered around the Shiba Inu dog designed to be compatible with the Ethereum blockchain. Shib, which trades at just $0.00001, has jumped by a third in the days since Musk completed his Twitter deal.
Unlike bitcoin, both doge and shib have nearly infinite supply, so it takes more than just speculative hoarding to push prices higher.
At the mercy of Musk?
A bet that Musk might allow cryptocurrency payments with dog tokens was sparked last week when he tweeted a photo of a Shiba Inu wearing a T-shirt on Twitter.
However, the early rise has stalled as many crypto investors are baffled by how serious he is about Dogecoin.
Musk, the world’s richest man, called Dogecoin a “hustle” on a talk show last May, causing its price to plummet.
And in January of this year, Tesla began accepting Dogecoin to pay for goods like the Giga Texas belt buckle and a mini electric car.
Musk’s newly launched perfume “Burnt Hair” is also available at the Doge.
Reporting by Vidya Ranganathan. Edited by Pravin Char
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