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Elon Musk SpaceX Dogecoin tweet doesn’t boost the price

Elon Musk said the Doge-1 satellite would be the very first crypto in space and the “first meme in space.” Photo: Hannibal Hanschke / Reuters

A tweet from Elon Musk stating that his SpaceX company would accept Dogecoin (DOGE-USD) to fund a lunar mission next year failed to boost the price of the cryptocurrency on Monday.

Dogecoin, which rebounded last week when internet users tried to push the value of the coin down to $ 1 (£ 0.70), was down 1.1% on the day to $ 0.53.

The owner of Tesla (TSLA) said the satellite, named Doge-1, would be the very first crypto in space and the “first meme in space.”

In a statement on Sunday, Geometric Energy Corporation also announced the “DOGE-1 mission to the moon”. The Canadian company is working with SpaceX to send a 40 kg satellite to the moon with a Falcon 9 rocket in the first quarter of 2022.

“After Geometric Energy Corporation and SpaceX officially closed a deal of this magnitude with DOGE, they cemented DOGE as the unit of account for the lunar business in the space sector,” said Samuel Reid, CEO of Geometric Energy, in a statement.

“To the Mooooonnn !!” Musk tweeted on Sunday.

It came after Dogecoin price fell from record highs on Sunday following Elon Musk’s appearance on Saturday Night Live (SNL).

See: Do you want to lose money? Buy Dogecoin advisor

Analysts had expected Musk to mention meme-inspired crypto on the show and drive prices up, instead his plug dropped the coin almost 25% from $ 0.69 to $ 0.48 after a few minutes.

Despite recent losses, the 2013 joke cryptocurrency gained around 400% in the past month and is up more than 14,000% since the start of the year.

Dogecoin was down on Monday morning that day.  Chart: Yahoo Finance

Dogecoin was down on Monday morning that day. Chart: Yahoo Finance

In addition to being endorsed by Musk, Dogecoin is also endorsed by rapper Snoop Dogg and Kiss bassist Gene Simmons.

In addition, a number of financial institutions and well-known investors have thrown their weight behind crypto and blockchain technologies.

Last week, popular exchange Gemini announced support for Dogecoin after eToro also added it to its online trading app. Meanwhile, it has been reported that Citigroup (C) is also weighing the option of offering cryptocurrency-related services after its customers’ interest increased.

The story goes on

The bank has not yet decided whether it will offer these services to its customers, but trading, custody and financing are all under consideration, the Financial Times said last week, citing Itay Tuchman, the bank’s global chief foreign exchange director.

Continue reading: The story of Dogecoin, the joke currency worth more than Barclays and Lloyds

Ethereum (ETH-USD), the second largest cryptocurrency, set another record this week after the price climbed to a new high of $ 4,105 overnight.

“Demand from institutional investors is fueling this latest move as large buyers diversify their exposure to this emerging asset class, with Ethereum being the natural next choice,” said Simon Peters, market analyst at eToro.

“The coin also has a much lower dollar value than Bitcoin (BTC-USD), which is currently trading just under $ 59,000 after an upward trend over the weekend.”

As more and more investors pour into Ethereum and increase its market capitalization, Bitcoin’s share fell sharply from around 60% to 45% last month, according to JP Morgan.

“Part of this decline was supported by increased institutional interest in Ethereum,” said Nikolaos Panigirtzoglou, cross-asset research analyst at JP Morgan.

“But to the extent that it is being driven by a rally in other cryptocurrencies, which is more driven by retail demand, it carries some echoes of the foam seen in December 2017 when Bitcoin’s share of around 55% had fallen below 35%. “

Continue reading: Cryptocurrency Ethereum breaks the $ 4,000 mark and hits a record high

However, cryptocurrencies have been under the watchful eye of governments and regulators eager to cater to the rising demand for the sector.

On Thursday, Bank of England Governor Andrew Bailey downplayed the rising value of cryptos.

Bailey said cryptocurrencies have no “intrinsic value” and people who invest in them should “be prepared to lose it all”. [their] Money.”

The governor’s comments reflected similar warnings from the UK Financial Regulator.

Laith Khalaf, financial analyst at AJ Bell, said: “The SpaceX Dogecoin moon mission is not a big leap for cryptocurrencies, because here on planet earth the long-term acceptance of crypto by consumers, companies and investors remains the least certain.

“If an asset can fall 30% due to someone appearing on Saturday Night Live, that says there isn’t one great fundamental value to hold its price.”

He added, “There’s little harm for consumers to shedding a few pounds for some fun, but don’t confuse that activity with saving for your future.”

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