Dogecoin
Cryptocurrency jumps 20 percent in a few minutes after Elon Musk tests it at Tesla
Elon Musk: He made Dogecoin explode with a tweet
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Tesla boss Elon Musk has repeatedly caused movement in the crypto market with his tweets. His tweet about Dogecoin, originally planned as a fun currency, also had a significant impact on prices.
Dogecoin – that was originally a parody of the increasing variety of different crypto currencies. It takes its name from the Internet phenomenon “Doge”, which revolves around dogs of the Japanese Shiba Inu breed. The Dogecoin logo is also a Shiba Inu.
Dogecoin: Crypto currency with price jump after Elon Musk announced it for Tesla
Dogecoin has increasingly moved away from the fun currency in recent years. In the shadow of the major cryptocurrencies like Bitcoin and Ether, Dogecoin has also blossomed into a currency with a market capitalization of over a billion dollars. Tesla boss Elon Musk also contributed to this, as he has repeatedly tweeted about the currency in the past, thereby drawing additional attention to Doge.
Another price jump is also related to Musk: After Musk announced today that Tesla would use Dogecoin on a test basis, the rate of the currency shot up by more than 20 percent at times. In a first step, according to Musk, only merchandise items can initially be paid for with Doge. The high-priced cars from Tesla must therefore continue to be paid for in the conventional way for the time being.
Controversies over Elon Musk and market manipulation
Investors should keep in mind that cryptocurrencies are highly volatile. As strong as the price jump up was, it can easily go down again as quickly. Dogecoin hit its all-time high back in May of this year and has since lost roughly two-thirds of its value. Elon Musk had also tweeted about crypto currencies such as Bitcoin in the past, causing them to move sharply.
At his own company Tesla, he had also caused strong price movements through tweets. After a lawsuit by the US Securities and Exchange Commission, Musk has to coordinate his tweets with attorneys in advance. Most recently, it became known that this does not always happen and that the SEC has therefore issued repeated warnings to Musk.
Sources: Twitter, Coinmarketcap, “Manager Magazine”