On February 10th, the Doge rally began to slowly fade away. On February 15, Musk urged Doge Whales to sell their coins to reduce the asset’s concentration.
Lately, Elon Musk has been a staple of headlines around the world for his remarks about cryptocurrencies. When he tweets people pay attention, and in the case of cryptocurrency, when he talks about assets, their prices go up. When Tesla announced it would buy $ 1.5 billion worth of Bitcoin, many speculated that it could start a chain reaction from other large companies. Bitcoin doesn’t appear to be Musk’s most popular cryptocurrency, however. This distinction belongs to the currency that originally started as a joke Dogecoin.
Currently, Dogecoin ranks slightly below the top 10 cryptocurrencies in terms of market capitalization as it has outperformed giants created thanks to millions of dollars from ICOs. Several prominent charity campaigns have been run for Reddit over the years to raise money in Doge. Dogecoin shouldn’t be a big deal, however. In fact, the currency was created using a Shiba Inu meme for the 2013 logo as a hoax. Dogecoin doesn’t have much to offer technologically. The only thing that drove the price of this coin up is the enthusiasm of the people. “Dogecoin is people’s crypto,” Musk recently tweeted. Let’s take a look at Musk’s history with Doge and where things are now.
2017-2018
Earlier this month, during a speech at the clubhouse, Musk admitted that he should have bought bitcoins 8 years ago. However, the first time Musk publicly mentioned crypto was in November 2017, when the rumor went around that Musk was the real Satoshi Nakamoto, to which he replied that he did not remember where he kept 0.25 BTC his friend sent him years ago. In 2018, Musk confirmed on Twitter that he owns no crypto other than 0.25 BTC. Things should change in the following year.
2019
In 2019, Musk called the Bitcoin structure “brilliant,” but stated that Tesla will stay away from cryptocurrency. That same year, Musk was named Dogecoin CEO in a Twitter poll. “Dogecoin could be my favorite cryptocurrency,” he replied. This tweet alone led to a 27% price increase for Dogecoin. Musk later added “Former Dogecoin CEO” to his Twitter bio and posted a Dogecoin meme. Another Doge-related tweet posted earlier this year stated, “Dogecoin value may vary.” The tweet was likely directed at the U.S. Securities and Exchange Commission, which Musk had previously pressured over his Tesla stock tweet, which was believed to be potentially market-moving. In the spring, Musk and Twitter CEO Jack Dorsey made statements hailing Bitcoin as a world-changing technology. However, it had no significant impact on the market.
2020
In January 2020, Elon tweeted the world that Bitcoin was not his safe word. In December of that year, he responded to a tweet reaching out to people short of Tesla stock and saying Bitcoin was his safe word. Another tweet he posted in December reads, “Bitcoin is almost as bad as fiat money”. But it was the end of December when Musk seems really immersed in the Doge. He started tweeting about Doge repeatedly, sparking a dramatic rise in prices. It started when Musk tweeted “One Word: Doge”. That alone was enough to trigger a Dogecoin price surge of 40%. For Christmas Elon posted a picture of shorts with the doge symbol sewn on.
2021
On January 27, Musk paid tribute to the WallStreetBets subreddit by tweeting a link to their community with the comment “Gamestonks”. It was made in the middle of the GameStop fiasco. WallStreetBets’ success inspired another subreddit, SatoshiStreetBets, to try to organize in a similar fashion just for cryptocurrency. This community has Dogecoin in its sights as their capital to pump. On January 29th, Musk supported this initiative by releasing a spoof image of a Vogue title entitled “Dogue”. At the same time, the Tesla CEO replaced his bio information with the word “Bitcoin”. Dogecoin price rose 800% in the hours following Musk’s tweets, breaking the $ 0.05 mark for the first time. For context, Dogecoin has been valued at less than a dime for most of its existence.
On February 4, Musk returned to Twitter after a two-day hiatus. One of the tweets he posted that day was a “doge” tweet in one word, followed by a meme reworking the iconic take from Lion King with Rafiki holding Simba to Musk holding a Shiba Inu dog holds (e). The latter tweet got over a million likes. Further highlights from his Twitter are “Dogecoin is the crypto of the people” and “No ups, no downs, only Doge”. These tweets made the Doge price even higher.
Musk continued pushing the Doge thing on Feb. 6, tweeting “Much Wow” and posting a poll asking people to choose the earth’s future currency. The options were Dogecoin or the rest of the cryptocurrencies combined. By this point, KISS’s Gene Simmons and Snoop Dogg had joined Elon to support Dogecoin, and Musk posted another meme in which all three celebs held Doge.
Musk’s tweets from early February were used by multiple cryptocurrency platforms. They didn’t want to miss the chance to use the hype to promote their services. One such company was wallet app developer Freewallet. It used Musk’s tweet to remind followers on Twitter that they can buy Dogecoin on their Freewallet accounts. Seemingly out of the clouds, Musk responded to Freewallet’s tweet saying that their app sucks. It was later revealed that Musk was actually using Freewallet and tweeted his displeasure after being banned from his account. After access was restored, Musk thanked Freewallet, the only crypto service Musk is known to use.
On February 10th, the Doge rally began to slowly fade away. On February 15, Musk urged Doge Whales to sell their coins to reduce the asset’s concentration. The businessman promised his “full support” to those who would follow his initiative and even went so far as to offer compensation in USD.
Why did Elon Doge chill while Tesla invested a staggering sum in Bitcoin? Since Musk has over 40 million followers on Twitter and is a popular person, his words resonate. People who don’t know a lot about cryptocurrencies may think that Musk is doing it just for fun. However, according to Elon himself, he has Dogecoin savings. He once tweeted that his little son was a “toddler hodler”. The simplest explanation for Musk’s behavior is that he has a deep love for memes and has found a way to express that love in a way that will benefit him financially.
Next Author: Norbert Kozma
Norbert Kozma is a crypto enthusiast, investor, and author. He believes cryptocurrency will replace fiat money and is working to expedite that process by disseminating trustworthy cryptocurrency.
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