Once again demonstrating their extraordinary ability to influence markets, Elon Musk’s tweets have driven an astonishing $320 million increase in Dogecoin’s valuation. The popular cartoon Scooby-Doo was featured in a recent tweet by the billionaire CEO of Tesla Inc. with the statement “Dogs ftw [for the win],” which had an instant effect on the price of the cryptocurrency.
The market value of Dogecoin increased by 3%, from $9.64 billion to $9.96 billion, in just 15 minutes after Musk’s tweet. This increase demonstrates the power of Musk’s social media influence to influence investors and have a substantial impact on the cryptocurrency market.
Musk has previously produced such jarring changes in Dogecoin’s value through his tweets. He has previously increased the value of the cryptocurrency by over 20% by sharing images of his dog and even changing Twitter’s logo to the Doge meme.
Given that he has openly lauded Dogecoin as his preferred cryptocurrency because to its humor and the inclusion of dogs, which is in line with his lighthearted and humorous approach to social media, Musk’s open fondness for the cryptocurrency is widely known. Such influence has, however, come under legal scrutiny. Musk is being sued for $258 billion in damages by a group of Dogecoin investors who claim that his tweets and statements amount to market manipulation. Musk’s lawyers dismissed the lawsuit, saying the allegations were completely false and that his tweets were just harmless fun. But this case has made it clear that tighter policies and accountability are needed in the unpredictable world of cryptocurrencies, where an influencer’s posts can drastically shift the market.
Today’s incident should serve as a wake-up call for investors– the crypto market is still vulnerable to wild swings. All thanks to influential people like Musk. So, when you’re making decisions in this space, it’s important to be careful with your moves and aware of the potential consequences of volatility.
Crypto’s a rapidly shifting universe, so the way that governments perceive social media influencers and their effect on digital assets like Dogecoin will be super intriguing to watch. Like, how will they respond when Musk tweets stuff? Will it still have such an enormous impact on the value of crypto?