In response to a meme, Musk tweeted about his sonhodling (a crypto trading lingo for holding) the meme-inspired cryptocurrency. This was enough cue for dogecoin fans on social media to trust the billionaire and buy the dip, which eventually pushed the prices up.
The tweet is the latest in a long list of market interventions by Musk in favour of dogecoin. Previously, Musk had tweeted that he bought his son, named X Æ A-12, dogecoin so that he can be a “toddler hodler”.
Table of Contents
The Joke Too Serious To Be Ignored
Amid the lull in crypto trading, Dogecoin has had a meteoric rise, almost by 6000%, in the last year.
Started as a joke in 2013 between two engineers, Billy Markus and Jackson Palmer, the digital currency was created combining Doge, the famous internet meme featuring Shibu Inu dog, with bitcoin.
The goal was to provide a fun alternative to bitcoin but one that is much faster. However, unlike bitcoin, there is no limit to the number of dogecoins that can be created.
Just 4 years later, the currency achieved an unimagined milestone – $2 billion market value. Propelled to fame by Reddit meme warriors, Dogecoin soon caught the attention of celebrities, most notably, Elon Musk, Mark Cuban and Snoop Dogg.
Much of Dogecoin’s success, in the last year, when its market valuation touched a whopping $92 billion in May, can be attributed to Musk’s relentless backing.
Though Musk had jokingly nominated himself as the CEO of Dogecoin, the cryptocurrency adheres to broader decentralization principles of blockchain and is not formally controlled or run by one entity or individual.
Dogecoin To The Moon
Every time the world’s richest man, Musk, sends out a tweet on dogecoin, the prices invariably spike. To the Moon is a fond saying among crypto-enthusiasts to remark moments when prices of cryptocurrencies skyrocket off the charts.
However, Musk’s love for Dogecoin doesn’t stop there. Besides being a strong believer in ‘Dogecoin becoming the currency of the Earth in the future’, Musk is also hopeful to take the meme-coin to the next level.
For one, Musk is on a serious mission to take dogecoin literally to the moon in 2022.
Besides, his ambitious SpaceX Project aimed at taking humans to Mars by 2026 coincides with making Dogecoin the dominant cryptocurrency. “Mars economy will run on crypto”, Musk noted.
By taking humans to Mars, Musk will surely propel Dogecoin to the moon.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.