Elon Musk’s attempt to return the Dogecoin rate to growth by posting tweets in support of the “meme” coin turned out to be a curiosity.
Tesla’s CEO Elon Musk tweets frequently. As a rule, after Musk’s tweets, the cryptocurrency assets that he mentions collapse below the baseboard or fly to the moon. But it looks like Elon Musk’s effect is starting to wane.
Yesterday, the billionaire posted a meme on his account with a photo of Marlon Brando as the godfather. The cryptic caption under the tweet read ” Release the Doge!”. And the picture read: “You come to me at runtime to tell me the code you are executing does not compile”.
In a matter of seconds, the coin climbed 8.5%, but quickly returned to lower levels. The miracle did not happen.
Elon Musk then made another attempt to pump up the value of Dogecoin by posting an obscure tweet. Altcoin was mentioned in combination with the word Baby, but the cryptocurrency market has tens of thousands of types of assets, among which there is a real Baby Doge. Less than an hour later, speculators rushed to pump this cryptocurrency. Now Baby Doge has taken the top spot in CoinMarketCap’s hot topics, surging 96% in 24 hours.
Active purchases of the new dog meme associated with the fact that many in the cryptocurrency market remember the history of Shuba Inu. The unknown token entered the top 30 cryptocurrencies, thanks to the accidental mention of this phrase in Elon Musk’s tweet. Elon Musk expressed in his tweet a desire to buy Shuba Inu, referring to the dog, not the cryptocurrency. Now Baby Doge has every chance of repeating this story.
Elon Musk’s manipulations
Since February of this year, the Tesla’s CEO has repeatedly sent his favorite DOGE token to the moon. As a result of the manipulation of crypto-twitter, the capitalization of the cryptocurrency reached $ 100 billion by the beginning of May. At this point, the DOGE rate rose sharply to its all-time high of $ 0.76. However, along with the May correction of Bitcoin, Dogecoin lost ground and fell by almost three times. Because all altcoins are bound to follow Bitcoin.
Yesterday showed that Ethereum co-founder Vitalik Buterin was right – in an interview with CNN in May, he promised that Musk’s influence on the cryptocurrency industry would inevitably come to naught: “Elon Musk’s tweets are what the cryptocurrency space first encountered literally last and this year. I think some recklessness is natural, but the market will adjust. Musk won’t have that kind of influence forever”.
Musk was already suspected of pumping Bitcoin and Dogecoin. For example, former SEC (Securities and Exchange Commission) analyst Mark Powers urged the regulator to check his crypto tweets for abuse of trust, since such statements can lead to multi-million dollar losses of subscribers. And among former Musk fans, the #stopelonmusk movement emerged.
Elon Musk is a controversial personality, as he continued to praise Dogecoin after abandoning Bitcoin, however, both coins use the principle of proof (PoW), require the participation of miners and, accordingly, are not environmentally friendly.