Elon Musk, the Tesla and SpaceX CEO have always made headlines in the crypto space. If it is not a case of scammers using his name, it is an instance where he predicts a bright future for the Dogecoin. He has trolled the cryptocurrency community once more with a tweet about his favorite coin and DOGE reacted upwards.
On July 18, he posted a sarcastic tweet about the meme crypto Dogecoin. It is not the first time that Musk has trolled the crypto and bitcoin communities with humorous remarks. He tweeted that ‘it’s inevitable’ and inserted an image showing the “dogecoin standard” greatly dwarfing the global financial system.
In response to a sarcastic tweet asking him for lost Bitcoin, Musk wrote:
“Excuse me, I only sell Doge!”
After the viral tweet, theDOGE price surged from $0.003052 to $0.003433, by around 14%. Whether the token gained due to Musk’s tweet or not, it is not yet proven. DOGE has low liquidity leaving it vulnerable to short-term pump and dump schemes.
Musk Entertains The Crypto Space
Recently, a viral TikTok sensation sent Dogecoin prices surging. Data obtained from CoinMarketCap indicates that Dogecoin surged from $0.0023 to $0.005 within three days from July 6 to 9 as a result.
Elon’s tween seems to refer to Dogecoin’s sudden surge in popularity in the mainstream. The spark in interest about the crypto on TikTok gained a lot of mainstream media coverage. All through 2019 ever since Musk declared that Dogecoin is his favorite crypto, he has constantly tweeted about the token.
Musk said in April 2019:
“Dogecoin might be my fav cryptocurrency. It’s pretty cool.”
Later in the year, Musk won a poll to become a self-crowned CEO of the meme-inspired crypto. That pushed him to write more sarcastic jokes about cryptos in general. In May while responding to J.K. Rowling’s tweet about Bitcoin, Musk wrote:
“Pretty much, although massive currency issuance by govt central banks is making Bitcoin Internet money look solid by comparison. I still only own 0.25 Bitcoins btw.”
Is Musk Benefiting The Crypto Space With His Tweets?
Musk somehow enjoys taking the spotlight and entertaining the crypto sector with several memes occasionally. He is not a serious investor in cryptos unlike other notable figures like Paul Tudor Jones. But, there is a silver lining with having him, high-profile and influential CEO in the U.S. tweet about cryptocurrency regularly.
Cryptos, as an asset class, remain a niche market for many investors. The Bitcoin market capitalization is still smaller than that of Tesla at the moment. Dan Tepiero, the founder of DTAP Capital, wrote:
“Not looking like a top in TSLA. Just broke out 7 days ago. At this rate, Elon Musk becomes the world’s richest person in a few months. The market is always right. What is it telling us about the future? Net worth now equal to 25% of all Bitcoin. Maybe he buys a few?”
For an asset class that is still growing, cryptos may benefit from the publicity that Musk brings to the sector.