Over time, popular billionaire and CEO of Tesla, Elon Musk has shown consistent support to cryptocurrencies. particularly Bitcoin, Ethereum and DogeCoin. However, the famous CEO has, in recent times, continued to give preferential treatment to DogeCoin above other cryptocurrencies in the sphere. Our findings traced the genesis of Elon Musk support for DogeCoin to 2019 when he relayed his first tweet about the coin. Elon Musk, in the tweet, noted that “Dogecoin might be my fav cryptocurrency, It’s pretty cool.”
Shortly after he relayed his preference for doge, reports revealed that the searches for Dogecoin spiked astronomically. More so, the value of the crypto skyrocketed by more than 20% in courtesy of the development. With this article, readers will get to realize why Elon Musk has chosen to support and give preferential treatment to DogeCoin. However, it is grossly impossible to do this without critically explaining the rudiments of the coin itself.
An overview of DogeCoin
Notably, DogeCoin emerged in 2013 through the joint efforts of IBM software engineer Billy Markus and Adobe software engineer Jackson Palmer. According to findings, the manifestation of the asset started as a joke between the two engineers. Interestingly, both of them never met before they combined to create the innovation.
Prior to its emergence, Jackson Palmer in a viral tweet hyped the project. According to him, “investing in Dogecoin, pretty sure it’s the next big thing.” Worth noting that the Adobe Software Engineer has always been keeping himself abreast of trends in the crypto sphere. His tweet in 2013 was greeted with scores of positive reactions and commentaries, a development which encouraged him to implement the project. Barely a week after, Palmer purchased a domain for the project, identified as Dogecoin.com.
A few days after the domain went live, Billy Markus became attracted to the project. The IBM software engineer then decided to reach out to Palmer in a bid to form a partnership. Earlier, Markus had thought of programming his own cryptocurrency capable of appealing a broadened user base. However, after stumbling on the domain, he decided to make the coin. According to him, “the first thing I said was, ‘This is so funny, then I said, ‘I should just make this coin.” Markus then reconfigured Bitcoin’s source code, converting its user-facing elements into the doge meme. Occasioned by the partnership, Dogecoin emerged in December of 2013, after it was derived from an open source software project, Litecoin.
A background check on the support for DogeCoin by Elon Musk
Till date, Elon Musk has continued to be one of the notable supporters of Dogecoin. Ever since he declared the crypto as his favorite in 2019, the Tesla CEO has consistently tweeted about it. Notably, his persistent tweets about dogecoin usually impact the value of the currency. For instance, in 2020, Musk, through his verified Twitter handle, relayed sarcasm about crypto. The CEO, in the tweet, said “it is inevitable,” with an image of a DogeCoin standard dwarfing the global financial system. Then, a user identified as izzynobre, in a reaction to the Twitter post asked Musk about lost BTC. Musk, however, answered that “excuse me, I only sell Doge.” Immediately after the tweet, the value of Dogecoin rose by 14%.
Recently, a DogeCoin investor sued Elon Musk, accusing him of running a pyramid scheme to rake profits from the meme cryptocurrency. The plaintiff, Keith Johnson filed a complaint in a federal court in Manhattan. Johnson, according to the filing seeks $86 billion in damages. However, despite the development, Musk still never retracted his support for the crypto. In his June, 2022 Twitter post, he said “I will keep supporting DogeCoin.” Shortly after the tweet, the value of the token reportedly spiked by 13%.
Adoption of DogeCoin by Tesla, owned by Elon Musk
Beyond tweeting about Dogecoin, Elon Musk has overtly backed the cryptocurrencies in other ways. In early 2022, the renowned CEO announced to the public that his electric car-making firm would accept the crypto for payments. Although, the development does not involve big purchases on the Tesla site. As revealed, customers can only purchase accessories on Tesla using Dogecoin.
However, Elon Musk attached some conditions to the usage of DogeCoin for purchases on Tesla. According to him, all purchases with the crypto cannot be exchange or refunded and must be completed within a certain period. More so, payment confirmation on the site, as revealed, will take at least six hours and the company will not be liable for inaccurate transfer by the customer. Notably, this development consequently spiked the value of doge by 9%.
Adoption of DogeCoin by SpaceX, owned by Elon Musk
In mid 2022, Elon Musk announced the resolve to allow people buy merchandise for SpaceX with Dogecoin. According to the popular billionaire, SpaceX, his space exploration startup would accept the crypto as a form of payment. This development consequently helped DogeCoin to further gain more momentum amidst its contemporaries. With the announcement by Musk, DogeCoin spiked by about 9%.
Why is Elon Musk supporting Dogecoin?
Without a doubt, Elon Musk’s support for Dogecoin cannot be overemphasized. Among numerous cryptocurrency enthusiasts, there are speculations about what could be the reason why Elon Musk is supporting Dogecoin. Meanwhile, the Tesla and SpaceX CEO has revealed the reason behind his undying support for the Memecoin.
In a recent interview, Elon Musk disclosed that the concept behind Dogecoin is the main reason he supports the token. The Tesla CEO unveiled that Dogecoin has numerous applications that will help the token grow in terms of utility. In the interview, Elon Musk compared Dogecoin to BTC. He established that the memecoin has a higher transactional power. Elon Musk asserted that while it takes BTC to process a transaction around 10 minutes, it’ll only cost Dogecoin 60 seconds.
The Tesla boss addressed claims emerging from a lawsuit regarding his support for the Memecoin. Recently, a lawsuit emanated claiming that Elon Musk is manipulating the price of Dogecoin for personal gain. Musk illustrated that his support for the token is beyond the accusation stemming from the lawsuit. Contrary to these claims, Musk intended to incorporate the use of Dogecoin as a medium of payment into Twitter. However, the intention has suffered a setback due to controversies surrounding the takeover deal.
Odds against Elon Musk support for Dogecoin
Lately, there are growing concerns in the cryptocurrency sphere that Elon Musk could withdraw is support from Dogecoin. A closer inspection indicates that there are numerous odds that could trigger the CEO to hold his support. Firstly, the ongoing lawsuit against Musk regarding Dogecoin could be a possible factor that might affect his support for the token.
Around June, a group of investors sued Musk for about $258 billion, accusing him running a pyramid scheme to support Dogecoin. The lawsuit alleged Elon Musk of drumming support for Dogecoin, thus contributing to its price soaring. Then, leaving the price to plunge. Meanwhile, if the heat emanating from the lawsuit intensifies, Elon Musk could withdraw his support for Dogecoin.
Also, Musk could stop advocating for Dogecoin due to the increasing competition the coin is enduring lately. Musk stated the swift processing of transactions as a motive behind his support for Dogecoin. Now, there are numerous projects in the crypto sphere that offer possess this attribute. In fact, there are projects that are doing well than Dogecoin at the moment. Undoubtedly, if Dogecoin slips behind its peers in that regard, Elon Musk might be compelled to reconsider his position.
Notable impacts of Elon Musk support on Dogecoin
One cannot undermine the impact and importance of Elon Musk’s support for the growth of Dogecoin. Arguably, the Tesla boss pushed the token into the limelight. This is one of the pointers emanating from the lawsuit against Musk regarding Dogecoin. Notably, Elon Musk’s impact on Dogecoin can be regarded as both positive and negative.
There have been numerous times when the token has suffered negatively due to Elon Musk’s support. Around May 2021, Musk appeared on a late-night comedy show “Saturday Night Live.” During the show, Elon Musk described Dogecoin as a “hustle,” therefore causing the token to fall by 35%.
On a positive contribution, the zenith of Elon Musk’s support for Dogecoin became known when the news about his procurement of Twitter emanated. Dogecoin soared by 15% when Musk first disclosed his intention to acquire Twitter. Then, Musk indicated that he would incorporate Dogecoin as a means of payment on Twitter. Likewise, in the same month, the value of the memecoin went up by 30% when Elon Musk disclosed the procurement of a certain stake in Twitter.
Aside from these instances, the continuous support from Musk towards Dogecoin has benefited Dogecoin more. At times, a segment of cryptocurrency Enthusiasts often refers to Dogecoin as Elon Musk Coin.
At the moment, Dogecoin still remains the most prominent dog-themed coin ahead of Shiba Inu. We ought to give credit to the evangelical support of Elon Musk for the growth recorded by Dogecoin. Nevertheless, Dogecoin has a lot to prove to show it can truly reward investors’ faith.
Dogecoin must leave the shadows of being Elon Musk’s coin and create a symbol for itself. Like every other token in the cryptocurrency space, Dogecoin has reacted the to present downturn in the crypto market. Dogecoin is presently battling it out with the harsh impact of the bear market to retain a good value of the investment entrusted to it. With the fierce competition from Shiba Inu, Dogecoin cannot continue to rely on the support of Musk to retain its position as a leading Dog-themed coin.
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