Dogecoin Soars Over 10% After Tesla CEO Tweets
Dogecoin surged over 10% after Mr Musk’s tweet.
Mr Musk has a record of commenting on cryptocurrencies. Dogecoin’s value soared late last year when Mr. Musk indicated that Tesla would make some goods available for purchase using a payment form.
Tesla bought $1.5 billion worth of bitcoin last year. Mr Musk also said at the time that the company would begin accepting payments in cryptocurrency. It later suspended those purchases after Musk expressed concerns about high levels of fossil-fuel use for bitcoin mining.
Mr Musk said last year that he and his rocket company, Space Exploration Technologies Corp., or SpaceX, hold bitcoin. The billionaire’s CEO said he also owns Ethereum and Dogecoin, other cryptocurrencies, although those holdings are worth less than his bitcoin stake.
Dogecoin has been one of the most volatile cryptocurrencies. It started as a joke in 2013 and is centered around a Shiba Inu internet meme. The value of the cryptocurrency increased last year and is up almost 2,000% compared to a year ago.
According to the Businesshala Billionaires Index, Mr Musk—the world’s richest man—is closely associated with Dogecoin. About a year ago, he tweeted a fake “Dog” magazine cover to his millions of followers. He mentioned the currency again on Twitter a few days later, sending up 80% of its value intraday, before turning gains.
Dogecoin made a cameo appearance on Mr. Musk’s “Saturday Night Live” hosting debut last year. In a satirical segment, Mr. Musk appeared as “The Dogfather”. After explaining on the merits of the cryptocurrency using jargon, other cast members asked him to explain, “What is Dogecoin?” Pressed, Mr. Musk eventually said, “Yeah, it’s a hustle.”
Write Robert Wall at [email protected]