Elon musk, Twitter, and Dogecoin (DOGE): a classic that still deserves a few lines, given the significant influence of the billionaire’s social media activities on the course of the crypto-joke.
The DOGE: a profitable sketch
Another week of pumping for the DOGE, Elon musk It would probably have something to do with his teasing on social networks about his participation in a sketch of the Saturday Night Live entitled “The Dogefather”.
Musk fell in love with the Dogecoin since 2020. He has not ceased to publicly display his love for the DOGE on Twitter since.
Musk has a double vision of the cryptosphere: he and You’re here have dived into the new finance, but the billionaire also pokes fun at the crypto and blockchain nonsense.
In a February 2021 interview, Musk said : “What would be the most ironic outcome? Let the money that was invented as a joke in fact become real money. “
Is Tesla CEO trying to ridicule followers of far-fetched currency theories – a currency has to be backed by something to have value and all the traditional economic blah blah – by trying to prove that the support of an influencer coupled with the power of social networks, is enough to give value to a new currency?
Whatever the purpose of tweets by Musk on the DOGE, they are closely watched and appreciated by traders, who do not say no to a blow of the pump for large gains even over a very short period of time.
In January 2021, the Blockchain Research Lab publishes the article “How Elon Musk’s Twitter activity moves cryptocurrency market”Identifying 6 cases of pump thanks to the intervention of Musk in favor of DOGE on social networks.
An analysis of Protos revealed that 4 of the billionaire’s tweets had a double-digit impact on the price of DOGE.
The latter is also much more sensitive to this type of advertising on social networks, given its low market capitalization – contrary to Bitcoin (BTC) or at theEther (ETH).
Do economists really understand how the money economy actually works? If a crypto created for fun, jokingly, like the DOGE manages to become a lasting currency stronger than the dollar, what about the foundations of certain classic theories such as the mechanisms relating to inflation?
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which appear to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.