Dogecoin and Elon Musk
Dogecoin was launched in 2013. It was based on a meme with a Shiba-Inu dog. Recently, thanks to Elon Musk, who posted a photo with a dog from this meme on his Twitter its popularity skyrocketed.
Tesla creator’s appearance on the USA entertainment show Saturday Night Live also had a big impact on Dogecoin’s soaring price. By the time Musk appeared in the evening program, the price of the coin had increased from $ 0.500 to $ 0.738. This event was actively promoted in media and social networks.
On the evening of May 8, the founder of the Digital Currency Group, Barry Silbert, resolutely said goodbye to Dogecoin in his post and announced the opening of a short position in the cryptocurrency. His announcement quickly spread across social media, causing the Doge to drop to $0.600. In an attempt to mitigate the negative in the comments, an hour later, Silbert issued a new tweet in which he promised to use all the proceeds from the shortening for the development of Bitcoin. Many people considered such actions of Spielberg as an opposition to the “Musk effect” and as a desire to draw the attention of the crowd to Bitcoin.
After Elon’s interview at the evening show, where he called Dogecoin “hustle”, the price of the coin began to melt and eventually fell by 40% — to $0.47. Market capitalization shrank to $65 billion. For a while, Dogecoin traded at $ 0.48. This is a good example of an insane crowd FOMO (“fear of missing out”) and its typical market implications.
Such news with the participation of celebrities significantly increases the number of crypto-machines and the popularity of cryptocurrency around the world. But only users can decide their attitude to digital currency. It is always worth remembering about the risks and that you should not invest all your money in one coin, especially in an asset that was created as a joke.