Elon Musk is at it again with his love for Dogecoin, the cryptocurrency that has captured the attention of millions of investors around the world. In his latest move, Musk has replaced Twitter's iconic bird logo with an image of a Shiba Inu, the breed of dog that has become synonymous with the digital currency. This change comes as Musk faces a $258 billion racketeering lawsuit, which accuses him of running a pyramid scheme to promote Dogecoin.
Despite the legal challenges, Musk remains undaunted and has continued to push the limits of what's possible with this tongue-in-cheek digital asset. Let's take a closer look at this latest development and what it could mean for the future of Dogecoin and its passionate community of supporters.
Elon Musk’s purchase and takeover of Twitter was a drawn-out affair that first began in the spring of 2022. The transaction was not completed until October, and its finalization sent Dogecoin soaring.
When Elon Musk officially took over the social media giant, extensive changes were soon to follow. Layoffs, new feature announcements, high-profile meetings and more took place under the microscope of the news media.
Elon Musk’s Twitter takeover coincided with a significant DOGE price rally. Musk’s acquisition of Twitter may offer promising prospects for the future of DOGE because of the ways Musk has shown support for this memecoin in the past.
Though Dogecoin is rooted in meme culture, the potential for its impact—bolstered by support from Musk—is no joke. The fact is that cryptocurrency adoption can and likely will gain traction through integration with social media giants like Twitter.
Let’s dive into the history of Elon Musk’s affinity for Dogecoin, and where his relationship with the world’s most popular memecoin may be headed.
Tracing Elon Musk’s interest in DOGE
Elon Musk is a polarizing figure and it can be hard to tell which of his commitments are rooted in deeply-held convictions and which are based on whimsy. Some experts feel Musk should focus on more established cryptocurrencies like Bitcoin, which has remained dominant in the crypto sphere since its inception.
At the same time, there’s no disputing Musk’s commitment to and interest in internet technology and online payment services, which is a reason why his engagement with DOGE is of note. In the late ‘90s, Musk co-founded X.com, which evolved into PayPal.
Musk recently claimed he believes he has the ability to create “a way better PayPal” using ideas that he developed more than two decades ago. These plans, Musk claims, could lead to the creation of the “most valuable financial institution in the world.”
Musk says his plan to create this new, valuable financial institution is part of why he feels Twitter will become very valuable. The association between Musk and success with forward-thinking online payments services in the past likely inspired confidence in those who pushed DOGE into its recent price rally.
Musk’s first engagement with the Doge community
Elon Musk first voiced support for Dogecoin in 2019, back when he wasn’t yet the richest man in the world, though his views still carried massive weight. In 2019, the official Dogecoin Twitter account ran a playful poll asking supporters to pick between prominent crypto figures to serve as the new CEO as Dogecoin. The Dogecoin community picked Elon Musk by an overwhelming margin.
In response to the poll, Musk tweeted that Dogecoin was maybe his favourite cryptocurrency, calling it “pretty cool.” Web searches for Dogecoin spiked shortly after Musk’s tweet.
Developments between Elon Musk and Dogecoin in 2021
2021 was a historic year for cryptocurrency growth and adoption in general. The market hit all-time-highs that have yet to be surpassed. Unprecedented growth in cryptocurrency mining operations and institutional adoption were also seen.
The relationship between Elon Musk and Dogecoin took on a new dimension in 2021 as well. Musk stated that he had begun work with Dogecoin’s developers regarding strategies to improve the network.
In 2021, some members of the Dogecoin community began speculating that one massive DOGE whale—owning nearly a third of the cryptocurrency—could be Musk. This speculation was heightened when 420.69 Dogecoins were added to the wallet—as many community members noted Musk’s past affinity for numbers with humorous connotations.
In the spring of 2021, Dogecoin saw an incredible growth in its value, soaring to around $0.69 per token after being valued at under a cent only a few months earlier. This growth was encouraged and supported by the SatoshiStreetBets subreddit, which was cheering on DOGE as it began to approach the $1 barrier.
The historic 2021 DOGE rally was followed by a much-anticipated appearance by Elon Musk on Saturday Night Live, in which he mentioned the memecoin. This appearance was preceded by plenty of tweets by Musk about Dogecoin—further solidifying the links between Musk, DOGE, and Twitter in the eyes of many.
How Elon Musk could grow Twitter using DOGE
The combination of Musk’s promotion of DOGE on Twitter, his engagement with its development, and his aspirations to monetize Twitter further have created an entrenched link between Musk and Dogecoin. This link has been key to the correlation between Musk’s sentiments about Dogecoin’s value.
Twitter has a significant role in the sharing of news and culture across the world. It is used by governments, politicians, and many other leaders whose opinions and decisions shape the way our world looks and works.
Twitter has been unprofitable for most of its existence. Musk has said his reasons for acquiring Twitter were not primarily financial, claiming that preserving a trusted and inclusive public forum is valuable for civilization in general. Elon Musk designing a model of Twitter that is profitable while mobilizing blockchain technology would likely be a positive development for global blockchain adoption.
Elon Musk’s unpredictable effect on Dogecoin’s value
The cryptocurrency market as a whole is volatile and extremely difficult to predict. Dogecoin is known for being among the most volatile cryptocurrencies of all. Though it’s well-established that Elon Musk can greatly influence the value of Dogecoin, it’s not always predictable in what direction he will send DOGE’s price.
When Musk announced in the spring of 2022 that Tesla and Starlink merchandise could be purchased using DOGE, a price spike of 17% ensued. Yet, following Musk’s SNL appearance—which many predicted would lead to a further surge—the token’s value fell by nearly 40%.
The Future of Dogecoin—could Musk help push DOGE over the one dollar mark?
Given that DOGE hit the $0.69 mark in 2021, reaching $1 per token certainly isn’t out of the question, particularly aided by the support of Musk. Reaching $1 would require more than fivefold growth in the current value of DOGE, but growth of this nature isn’t unprecedented in the crypto. For instance, the mining hardware space saw a tenfold growth in value over the last year.
The cryptocurrency market can be unpredictable, particularly when it is affected by figures like Elon Musk who can sway sentiments with an offhand tweet. ASIC Magazine offers you the resources you need to stay abreast of the newest developments in the space.
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