Elon Musk is back at it again. Almost weeks after Musk made a direct comment about the cryptocurrency and its future, the ‘Musk Effect’ still appears to be going strong, especially with the Tesla boss and SpaceX CEO’s favorite cryptocurrency, Dogecoin. Dogecoin started as a joke. In early 2021, however, the joke appears to have turned on those who didn’t take the meme cryptocurrency seriously. The meme-cryptocurrency Elon Musk wouldn’t stop tweeting about reached an all-time high in mid-April, crossing 10 cents for the first time. his is the highest-ever for the cryptocurrency, and the result of a semi-ironic movement that’s involved thousands of buyers, tens of thousands of online posters and the world’s richest man, Elon Musk. In early January, each token was worth less than one cent. In late January, when both the GameStop and DogeCoin movements hit their stride, the value of DogeCoin shot up to 7.5 cents, well over a 10-magnification, before sliding down to 2.5 cents.
While Musk has consistently stopped tweeting about the cryptocurrency, (which has also been met with a lot of backlash for people who blame Musk for investing their money in it, only to see it no longer rise) in end June he shared that he would be getting a pet Shiba Inu soon, and announced naming his Shiba Inu ‘Floki.’
In the early hours of September 13, Musk posted an update – a photo of his new puppy: Floki.
Following Musk’s tweet, Dogecoin recorded a +0.36% change in the last 24 hours, with the rise in value, coinciding with the same time Musk posted the tweet 3:50 AM (GMT +5:30).
Dogecoin was not the only cryptocurrency that jumped – Baby Doge Coin, a spinoff of Dogecoin, also recorded a +1.80% in the last 24 hours according to CoinMarketCap. Baby Doge is described as having ‘learned a few tricks and lessons from his meme father, Doge Coin. A Birthed by fans of the Doge community. Baby Doge seeks to impress his father by showing his new improved transaction speeds & adorableness. He is Hyper-deflationary with an integrated smart staking system built in so more baby doge are being added to your wallet. Simply Love, pet, and watch your baby doge grow.’
This is not the first time Musk has ‘accidentally’ led to the surge in prices of the cryptocurrency. It’s not even the second, or third time. Every time Musk mentions the cryptocurrency, a surge (often following an eventual downfall) occurs in the prices of the cryptocurrency. Dogecoin, much like Bitcoin, is a digital coin used for e-transactions. Doge is a reference to the ‘doge’ meme and has a picture of the shiba inu on it. It is a cryptocurrency, a form of digital money that, much like bitcoin, enables peer-to-peer transactions across a decentralized network.
Since its creation, Doge has also been used to donate money to charities. These have included the 2014 Jamaican Bobsled team who couldn’t afford to get to the Sochi Winter Olympics, a Nascar driver named Josh Wise, and a clean water project in Kenya called Doge4Water.
At the peak of the meme’s popularity in 2013, Palmer, an Australian marketer, made a joke combining two of the internet’s most talked-about topics: cryptocurrency and Doge. He bought the Dogecoin.com domain and uploaded a photoshopped Shibe on a coin.
“If you want to make Dogecoin a reality, get in touch,” said the website. On the other side of the world, Billy Markus, a software engineer at IBM, got in touch and set Dogecoin live. Dogecoin soared up by more than 60 per cent over the last 24 hours and experienced a 1,421 per cent increase in trading volume according to crypto data firm CoinMarketCap.
The peak price of Dogecoin in 2018 was around two cents, right before it crashed along with the rest of cryptocurrency. Reports suggest that by early 2019, Dogecoin had lost nearly 90 per cent of its value and was trading for a fraction of a penny, until 2021.