Dogecoin Soars Once more As Elon Musk Returns From Self-Imposed Twitter Exile

Top line

The value of Dogecoin, a cryptocurrency originally invented as a joke, spiked again Thursday when Elon Musk ended his break from Twitter with a series of posts about it – Musk’s tweets have increased the value of Dogecoin many times and last week as a retailer sparked a 900% surge, encouraged by efforts to pump meme stocks like GameStop, piled up in the cryptocurrency.

Elon Musk returned to Twitter to talk about Dogecoin (Photo by Yuriko Nakao / Getty Images)

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Key factors

Musk said Tuesday he was “away from Twitter for a while,” but returned just two days later to tweet about the launch of new Starlink satellites, memes and Dogecoin.

He posted an edited image of the Lion King holding up Doge – the Shiba Inu meme that inspired the cryptocurrency – with the caption “ur welcome.”

“Dogecoin is the people’s crypto,” wrote Musk.

“No ups, no downs, just Doge,” wrote the billionaire, who also replied to a picture of a rocket with just “Doge” (Redditors pumping Dogecoin use the phrase “to the moon” with rocket emojis to symbolize value taking off).

Following Musk’s tweets, Dogecoin rose in value by more than 40% to around $ 0.058 per coin, according to crypto data firm CoinMarketCap.

Key background

Musk’s activity on Twitter has resulted in dramatic changes in the financial markets, and in the past few weeks he has seen the price of Bitcoin skyrocket after changing his Twitter bio to “Bitcoin” and GameStop stocks, the Dealers already concerted by Reddit rose 56% after saying “Gamestonk !!” had tweeted. to support the movement. His recent tweets about the Etsy online store and the secure messaging app Signal sparked rising interest, and shares of an independent company called Signal Advance rose 1,100% as investors thought it was the app. Musk has been a regular sponsor of Dogecoin in the past, including last week when many Reddit traders tried to pump it to the “moon”. Its value rose over 900% in one day before it crashed spectacularly. Musk’s Twitter-driven impact on the marketplace isn’t always beneficial. A single tweet from Musk last May saying the stock was “too high” caused Tesla stock to drop 10%. A British speleologist sued unsuccessfully for defamation after Musk called him the “pedo guy” on Twitter in 2019. The SEC also sued Musk in 2018 for tweeting that he would take Tesla privately in violation of securities laws, the agency said. Musk and Tesla both paid $ 20 million to settle the lawsuit.

tangent

Musk’s tweets often add value to Dogecoin. A three-word tweet from Musk in December drove Dogecoin up 20%.

Crucial quote

“I’ve become memes, destroyers of shorts,” Musk wrote Thursday, referring to his role in increasing the value of meme stocks like GameStop. It is an interpretation of the famous quote “Now I am death, the destroyer of the worlds”, which the physicist Robert Oppenheimer originally quoted from the Bhagavad Gita when the first atomic bomb was successfully detonated.

Big number

$ 184.8 billion. Forbes calculates Musk’s net worth as a number that marks him as the second richest person in the world. Musk has been shuttling in and out of the richest place in the world for several months. Jeff Bezos, founder of Amazon, currently holds the top spot with $ 192.6 billion.

further reading

“It’s Doge Time”: Dogecoin Rises As Reddit Traders Push To Make It Crypto GameStop (Forbes)

Billionaire Elon Musk Says He Is Leaving Twitter For A While (Forbes)

“Joke” Crypto Dogecoin Rises Over 500% In Reddit-Driven Boon (Forbes) Within 24 Hours

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