The cryptocurrency markets have matured fairly a bit over the previous decade. Even Dogecoin (CCC:DOGE-USD), which started out as a meme or joke token in 2013, may be thought of a viable funding these days.
However does it really make sense to personal Dogecoin now?
A sure rich and eccentric superstar appears to consider so. He’s grow to be so influential on asset costs that evidently, he can transfer whole market segments with a single Twitter (NYSE:TWTR) put up.
On the similar time, a sure group of Reddit customers was additionally in a position to transfer the Dogecoin value quick and much – and it’s doable that they might precipitate one other bull run.
None of this has something to do with the token’s precise worth. However then, does it matter anymore? In these loopy occasions, whether or not they’re prepared or not, merchants need to adapt their methods.
Earlier than the Insanity
If Dogecoin actually did begin out as a joke coin, then maybe we shouldn’t anticipate its value motion to be rational.
But, the token’s value actions have been nonetheless pretty orderly in 2020. For all the yr, whereas there have been peaks and valleys, the worth stayed beneath one cent.
That tweet wasn’t sufficient to induce a serious breakout. But, it foreshadowed Musk’s later expressions of enthusiasm for this previously obscure digital asset.
And certainly, Musk’s obvious love affair continued in late 2020. Particularly, on Dec. 21, he quickly changed his Twitter bio to “Former CEO of DogeCoin.”
Don’t Overlook Reddit
Let’s not assume that Musk is the one affect on cryptocurrency costs. A now-famous subreddit often known as r/WallStreetBets has additionally wielded appreciable energy over asset costs.
On Jan. 28, 2021, Twitter person @WSBChairman posted a seemingly harmless tweet asking, “Has Doge ever been to a dollar?”
The day past, that very same Twitter person inquired, “A number of you’re speaking about Dogecoin. What’s that? A meme crypto?”
After all, @WSBChairman knew the reply to these questions. I’m going to imagine that these have been taunts on the very least, and presumably the all-clear indicators for r/WallStreetBets members to pump up the Dogecoin value.
And certainly, the worth was pushed as much as a nickel in a matter of days after these tweets have been posted. The r/WallStreetBets have demonstrated their potential to juice up asset costs. That’s one motive to keep away from taking the quick aspect of the commerce.
Musk Eyes the Moon
By no means one to be one-upped, Musk continued his collection of pro-Dogecoin tweets:
- Feb. 4, 2021: Musk tweeted the phrase “Doge” together with a picture of a rocket taking pictures for the moon. That very same day, he known as Dogecoin “the folks’s crypto.”
- Feb. 10: He tweeted, “Bought some Dogecoin for [Musk’s son] lil X, so he generally is a toddler hodler [i.e., a buy-and-holder of the asset].”
- March 12: Musk opined on Twitter that he thinks the Coinbase cryptocurrency platform ought to listing Dogecoin.
- April 1: He notoriously tweeted, “SpaceX goes to put a literal Dogecoin on the literal moon.”
The April 1 tweet had a substantial affect on the token’s value, causing it to rise 32% from round 5 cents to roughly 7 cents.
Clearly, Musk’s influence should be taken significantly, no matter whether or not it’s rational or not.
The Backside Line
Was the “literal moon” tweet merely an April Idiot’s Day joke? Or, was it a critical assertion of Musk intention to fly a crypto coin into area?
To be sincere, I don’t know what makes Musk tick, or what he was considering when he despatched out that tweet.
All I do know is that Musk appears to actually like Dogecoin, and his energy to maneuver asset costs signifies that it’s not sensible to wager in opposition to him.
On the date of publication, David Moadel didn’t have (both instantly or not directly) any positions within the securities talked about on this article.