Elon Musk, the CEO of Tesla and Space X is known for his support for cryptocurrency which is often expressed on his Twitter. He constantly talks about Bitcoin and the meme currency dogecoin, and his tweeting spree is subsequently associated with the surge and often following an eventual downfall in the prices of the cryptocurrency. Termed, as the “Musk Effect”, this phenomenon occurred again when on late Thursday night he put up a tweet related to the meme currency Dogecoin.
Replying to a tweet that said, “This tweet is not about Bitcoin. Not everything is about Bitcoin. Or is it?” Musk added that sometimes, it is about dogecoin.
According to Coindesk, Musk posted the tweet around 2:45 AM IST (GMT +5:30). Post this tweet, Dogecoin recorded a spike in numbers around 3 AM. However, this 24-hour spike did not essentially cover up for the loss rates of the coin and it still stood at -2.05%. The prices of DOGE in the last weekend surpassed over $0.06 over the days after the tweets of Musk apparently caused a nearly 300% surge in the price of the Shiba Inu token. This is not the first time the tweeting of Musk has spiked the prices of the coin.
News 18 reported, “Musk who has been consistently tweeting about the meme cryptocurrency for a while led to the all-time-high $0.065448, up about 35% from its 24-hour low of $0.048356, according to CoinDesk in early February.”
“The cryptocurrency’s price later dropped again before climbing back to about 25% gain. The Shiba Inu-themed digital coin had then surpassed 8 cents for the first time, just a week after crashing to 2.5 cents and sparking an outcry on Reddit”, it added.
Musk felt that too much concentration of Dogecoin was the “real issue” and he said that he supports the idea of major holders selling most of their coins of this meme-based digital currency.
“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue IMO,” he said in a tweet. He further offered to pay actual dollars for it.
Extending his support to this coin, Musk had posted a Twitter poll in February asking his 45.8 million followers to choose “the future currency of Earth.” His two options were “Dogecoin to the Moooonn” or “All other crypto combined.” The result of the poll was that 71.3% of the 2.4 million voters chose that “Dogecoin to the Moooonn” would be the future of currency. He has also endorsed Bitcoin by even adding "#Bitcoin" to his Twitter bio, which has now been deleted.