Tech billionaire Elon Musk, previously associated with Twitter and now known as X, recently strongly supported Dogecoin (DOGE) on his social media platform. This caused DOGE’s price to increase by 3.25%, reaching $0.064 briefly. Musk’s statement led to a rush of investor activity, resulting in the purchase of 25.69 million DOGE within a minute of his tweet.
Musk’s vocal advocacy for DOGE isn’t a new development, as he has consistently shown support and even unveiled plans for a Dogecoin-themed venture within his space exploration company, SpaceX.
Recently in a report by Todayq News on August 5, 2023, Musk addressed concerns regarding fraudulent tokens falsely claiming affiliation with his rebranded social media platform, X. He reassured the cryptocurrency community by stating that X has no intention of introducing any crypto tokens, emphasizing that this decision is final.
However, his enthusiasm for DOGE has also involved him in legal issues, including a lawsuit from investors who accused him of insider trading. He also revived controversy by changing his Twitter icon to the Dogecoin (DOGE) logo, which led to a rapid 22% price increase for DOGE and a $1.7 billion surge in market cap. Critics like Bitcoin advocate Jimmy Song accused Musk of manipulating DOGE’s price for personal gain, pushing DOGE’s price to its highest point since December 2022.
Not only Dogecoin but also Musk’s recent tweet had a significant impact on the cryptocurrency market. His tweet caused the price of a cryptocurrency called Cult DAO (CULT) to increase dramatically by over 70% in just an hour. The tweet had only two words, “Cult/Culture,” which led people to believe that Musk might support the project. This speculation caused the price of CULT to rise by 53% in a day, and it is now being traded at a value of $0.00000757.
Musk’s tweets can significantly impact cryptocurrency markets, especially Dogecoin (DOGE). His recent interaction shows his ongoing interest in DOGE and its appeal to the community. He uses his influence to keep DOGE relevant and strengthen his connection with followers.
Crypto investors hope he’ll enable DOGE payments on X. Musk has a history of talking about Dogecoin, even before owning the site. He’s called it “the people’s crypto,” and Tesla accepted it as payment for merchandise.