Dogecoin Surged 25% Thanks to a Simple Tweet from Elon Musk About the Cryptocurrency

Early this Sunday, the CEO of Tesla and SpaceX took to Twitter to dismiss Bitcoin and caused a significant increase in DOGE.
Dogecoin Surged 25% Thanks to a Simple Tweet from Elon Musk About the Cryptocurrency
Image credit: Doge Coin | Shutterstock | Enhanced by Entrepreneur

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It's amazing Elon Musk's ability to influence markets with just typing a few words. This Sunday, the cryptocurrency Dogecoin increased by about 25% in value after the second richest man in the world mentioned it on Twitter.

It all started in the early hours of December 20, when Musk wrote in his official account that "Bitcoin is my safe word ." Moments later he clarified: "Just kidding, who needs a safe word anyway ."

Next, the CEO of Tesla and SpaceX shared a meme alluding to how tempting it is to invest in Bitcoin. Recall that this week, the popular cryptocurrency reached an all-time high above $ 23,000 .

Minutes later, Musk expressed his disdain for the same cryptocurrency. "Bitcoin is almost as bullshit as fiat money ," he wrote in another tweet.

Fiat money or inorganic money is one that is not based on the value of precious metals. Instead, it is supported by the general belief that it has value, that is, the trust of a society. For example, the Dollar , the British Pound , the Euro and the Yen are fiat money.

The most interesting thing happened at the edge of 3:30 hours, Central Mexico time, when the tech mogul published a short tweet that only said: "One word: Doge ."

Musk did not say more about the cryptocurrency or invite investment in it, but he did change his Twitter bio to "Former CEO of Dogecoin ."

Image: Twitter / @ elonmusk

The simple mention increased its value by 17% almost instantly, going from 0.0039 to 0.0046 dollars. In the following hours, it reached a gain close to 25% , which "fell" to 15% about 12 hours after Musk's tweet.

The last time the businessman alluded to the DOGE was in July 2020, when he said that he envisions a "standard future for Dogecoin" and at that time it was up 14%.

What is Dogecoin and where did it come from?

Also known as DOGE , it is a cryptocurrency derived from Litecoin created in December 2013. It is based on the famous Internet meme “doge”, a dog of the Shiba Inu breed also known as 'Cheems'. While it was originally a joke coin, netizens were quick to adopt it.

Its popularity took off last July, when TikTok users launched a campaign to push the price of Dogecoin above a dollar, CoinDesk reported at the time.

According to data from CoinMarketCap , Dogecoin ranks 41st among the top decentralized financial tokens (DeFi). Its market capital is around 574 million dollars , a figure much lower than other cryptocurrencies. For example, Bitcoin has a market capital of over $ 448 billion.

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