Elon Musk, the CEO of Tesla and SpaceX, posted a sarcastic tweet in regards to the meme cryptocurrency Dogecoin (DOGE). It isn’t the primary time Musk has trolled the crypto and Bitcoin (BTC) communities with humorous remarks.
He tweeted “it’s inevitable,” with a picture displaying the “dogecoin commonplace” dwarfing the worldwide monetary system.
Elon Musk tweets a Dogecoin meme. Supply: Elon Musk Twitter
Responding to a sarcastic tweet asking Musk for misplaced Bitcoin, Musk wrote:
“Excuse me, I solely promote Doge!”
The value of DOGE rose by 14% on the day. Supply: TradingView.com
After Musk’s viral tweet, the value of Dogecoin rose from $0.003052 to $0.003433, by round 14%. Whether or not DOGE rose on account of Musk’s tweet can’t be sure. In contrast to prime cryptocurrencies, DOGE has comparatively low liquidity, which leaves it weak to short-term pump and dumps.
Musk continues to lightheartedly entertain the crypto neighborhood
In current weeks, a viral TikTok sensation despatched the value of Dogecoin surging. Knowledge from CoinMarketCap exhibits Dogecoin rose from $0.0023 to as excessive as $0.005 inside merely three days from July 6 to 9 consequently.
Musk’s tweet seems to be in reference to Dogecoin’s sudden enhance in reputation within the mainstream. The unexpected spark in interest about the cryptocurrency on TikTok garnered important media protection.
All through the previous yr, ever since Musk declared that his favourite cryptocurrency is Dogecoin, he has repeatedly tweeted about crypto.
Musk said in April 2019:
“Dogecoin could be my fav cryptocurrency. It’s fairly cool.”
“Just about, though large forex issuance by govt central banks is making Bitcoin Web cash look strong by comparability.”
“I nonetheless solely personal 0.25 Bitcoins btw.”
Is Musk tweeting about crypto useful for the trade?
Musk seemingly enjoys entertaining the crypto trade with the occasional meme tweets. He fairly clearly is just not a critical investor in cryptocurrencies, not like the likes of different in style figures resembling Paul Tudor Jones.
However, there’s a silver lining with having arguably one of the vital high-profile and influential CEOs within the U.S. tweet about crypto frequently.
Cryptocurrencies, as an asset class, nonetheless stay as a distinct segment market for a lot of buyers. The market capitalization of Bitcoin, essentially the most dominant cryptocurrency within the world market, is smaller than that of Tesla.
Dan Tepiero, the founding father of DTAP Capital, wrote:
“Not wanting like a prime in TSLA. In reality, simply broke out 7 days in the past. At this charge, Elon Musk turns into world’s richest particular person in a number of months. The market is all the time proper. What’s it telling us in regards to the future? Web price now equal to 25% of all Bitcoin. Possibly he buys a number of?”
For an asset class in an early part of progress, cryptocurrencies may benefit from the publicity Musk brings to the trade.