The man behind Dogecoin’s recent growth in the cryptocurrency market is no mystery.
Love him or hate him, Elon Musk’s grip on the cryptocurrency market makes an impact. The Tesla and SpaceX leader changed his display picture on Twitter which made Dogecoin jump by 10%. What’s the hullabaloo about? Elon Musk’s new photo is his headshot with Doge, Dogecoin’s symbolic Shiba Inu, reflected on his sunglasses. Seems like an average fanboy photoshop, right?
Dogecoin’s co-founder, Jackson Palmer, recently returned to Twitter and showed his dissatisfaction with the current cryptocurrency market. In his tweet, he explained how cryptocurrencies have enabled “free for all” capitalism. The day after this tweet, Elon Musk started a conversation about his son holding the Doge like a champ, indicating his favoritism for the cryptocurrency.
When an influential person comments against a cryptocurrency, the market experiences a dip. But despite the comments on cryptocurrencies (which includes Dogecoin), Jackson Palmer could make an impact on the crypto world, which Elon’s image spoke a thousand words and caused the value of a Dogecoin to rally by 10%.
Wouldn’t you be happy if an external factor was making the price of your cryptocurrency go up? Well, Dogecoin’s other co-founder, Billy Markus was not pleased. His tweet highlighted Billy’s apprehensions about Dogecoin’s value as Musk-hyped Dogecoin’s all-time-high faded away in a short period of time. In May 2021, Dogecoin grew by more than 15,000%, from US$0.004 to US$0.70. Soon, the hype died down and Dogecoin lost almost 70% of its value.
When Dogecoin was created, its intention was to be a joke. But thanks to Elon Musk, Dogecoin’s value shot up. He called himself the Dogefather and thus began the tale of Elon’s influence. The billionaire CEO did receive heavy criticism from market experts for creating volatility with his comments and people went to the extent of creating a token to spread this message called StopElon.
One can say that Elon Musk is just trying to be humorous with his antics, but the fact that he has the power to move markets seems unfair to many investors. After all, can you imagine your investments being controlled by one whacky billionaire? On a grander scheme of things, the cryptocurrency market gets both good and bad out of it.
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