What Happened: The Tesla Inc TSLA CEO tweeted an image of what appeared to be a dollar bill featuring an image of Dogecoin’s mascot, a Shiba Inu, in place of George Washington.
How much is that Doge in the window? pic.twitter.com/bxTkWOr50V
— Elon Musk (@elonmusk) May 20, 2021
“How much is that Doge in the window?” Musk asked his Twitter followers, which unsurprisingly led to a surge in the price of the meme-based cryptocurrency.
According to CryptoWatch, Dogecoin’s price surged over 14% in just 20 minutes after Musk’s tweet.
The overall effect on Dogecoin’s price was much higher, as the cryptocurrency touched a high of $0.43, gaining over 48% since its 24-hour low of $0.29.
See also: Is Dogecoin a Good Investment?
Why It Matters: While Musk’s impact on the price was apparent, the tweet in itself was interpreted by some as a signal that the cryptocurrency would reach a price of $1.
Musk had previously stated that he aims to make Dogecoin the “currency of Earth” and that he was working with the cryptocurrency’s developers to improve transaction efficiency on the Dogecoin network.
However, recent comments from Dogecoin’s core developer Patrick Lodder seem to indicate otherwise.
See also: Elon Musk Fights Sanders And Bezos To Launch Dogecoin Into Space In New NFT Video Game
“No. This is not the truth unless nominating Elon Musk for “CEO” in a Twitter poll on April 1, 2019, means ‘working with’” said Lodder on Reddit.
“In this particular case with Mr. Musk though, there has been communication, but there is no “collaboration” whatsoever.”
Image: Screenshot of Elon Musk's tweet
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
