Elon Musk’s ‘effect’ may still be continuing, even if its been weeks since directly made a comment about his favorite cryptocurrency – Dogecoin. Dogecoin started as a joke. In 2021, however, the joke appears to have turned on those who didn’t take the meme cryptocurrency seriously. The meme-cryptocurrency Elon Musk wouldn’t stop tweeting about reached an all-time high in mid-April, crossing 10 cents for the first time. his is the highest-ever for the cryptocurrency, and the result of a semi-ironic movement that’s involved thousands of buyers, tens of thousands of online posters and the world’s richest man, Elon Musk. In early January, each token was worth less than one cent. In late January, when both the GameStop and DogeCoin movements hit their stride, the value of DogeCoin shot up to 7.5 cents, well over a 10-magnification, before sliding down to 2.5 cents. The coin has spent the past few months in the three- to the seven-cent range.
Musk, who is now also known as the ‘dogefather’ for rallying the cryptocurrency, recently publically commented that Dogecoin could be the ‘strongest’ cryptocurrency out there. Billionaire entrepreneur Mark Cuban’s claim that dogecoin is the strongest cryptocurrency as a medium of exchange was backed by Musk on Twitter. Cuban told CNBC last week that “the community for doge is the strongest when it comes to using it as a medium of exchange.”
In response to CNBC’s article about Cuban’s claims, Tesla boss Musk tweeted on Saturday: “I’ve been saying this for a while.”
I’ve been saying this for a while— Elon Musk (@elonmusk) August 14, 2021
Following Musk’s tweet, Dogecoin witnessed a significant rise on August 15 and August 16, according to CoinDesk data.
Musk really has been saying it — for a while. In May, Musk in an interview said that “There is a good chance that crypto is the future currency of the world. Then the question is which won is it going to be? It could be multiple,” he said.
He then explains the origins of how Dogecoin was invented as a joke, essentially to make fun of cryptocurrency, and that’s the irony, explains Musk. “That the currency that began as a joke, becomes the real currency.”
In the video, he does add that, “Don’t invest your life savings into cryptocurrency. That’s unwise.”
Tesla CEO and SpaceX boss Elon Musk appears to have a side-job – hustling for cryptocurrency prices on Twitter. The billionaire who has consistently rallied support for bitcoin and the meme currency dogecoin, late on Thursday night, put out a tweet yet again on the meme-based cryptocurrency. This is not the first time Musk has done this, or even the second, or third time. Every time Musk mentions the cryptocurrency, a surge (often following an eventual downfall) occurs in the prices of the cryptocurrency. Internet sleuths have more than just co-related the phenomenon, they’ve even christened it: “The Musk Effect.”
Dogecoin, much like Bitcoin, is a digital coin used for e-transactions. Doge is a reference to the ‘doge’ meme and has a picture of the shiba inu on it. It is a cryptocurrency, a form of digital money that, much like bitcoin, enables peer-to-peer transactions across a decentralized network.
Since its creation, Doge has also been used to donate money to charities. These have included the 2014 Jamaican Bobsled team who couldn’t afford to get to the Sochi Winter Olympics, a Nascar driver named Josh Wise, and a clean water project in Kenya called Doge4Water.
At the peak of the meme’s popularity in 2013, Palmer, an Australian marketer, made a joke combining two of the internet’s most talked-about topics: cryptocurrency and Doge. He bought the Dogecoin.com domain and uploaded a photoshopped Shibe on a coin.
“If you want to make Dogecoin a reality, get in touch,” said the website. On the other side of the world, Billy Markus, a software engineer at IBM, got in touch and set Dogecoin live. Dogecoin soared up by more than 60 per cent over the last 24 hours and experienced a 1,421 per cent increase in trading volume according to crypto data firm CoinMarketCap.
The peak price of Dogecoin in 2018 was around two cents, right before it crashed along with the rest of cryptocurrency. Reports suggest that by early 2019, Dogecoin had lost nearly 90 per cent of its value and was trading for a fraction of a penny, until now.