What's behind Dogecoin's price movement?
What is Dogecoin?
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer on December 8, 2013.
The Dogecoin was intended as a fun alternative to Bitcoin with uses of crowdfunding social causes or giving online tips.
The main difference between Dogecoin and Bitcoin is that the infinite number of Dogecoins can be produced.
The Dogefather
Thanks to Elon Musk, Dogecoin is up more than 800% over the last month. This self-proclaimed "CEO of Dogecoin" never hides his love of Dogecoin, dubbing it "the people's crypto".
Many believe that there is a strong correlation between Musk's tweets and the coin's price movements.
He has talked up the coin over the past few months, including the announcement on May 9 that it'll be used to pay for a new moon mission launched by his SpaceX rocket company next year.
What happened?
According to CoinMarketCap, last week's surge pushed Dogecoin's market cap to over $70bn, making it become the fourth-most valued coin.
However, after Musk called Dogecoin a "hustle" on Saturday Night Live, Dogecoin lost more than a third of its price on Sunday.
On Wednesday, Elon Musk tweeted again, saying Tesla will stop using Bitcoin as a form of payment over concerns of the cryptocurrency's impact on fossil fuels.
The announcement led the price of Bitcoin to drop over 13%, and Dogecoin plummeted by 20%, sliding below 40 cents per coin.
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer on December 8, 2013.
The Dogecoin was intended as a fun alternative to Bitcoin with uses of crowdfunding social causes or giving online tips.
The main difference between Dogecoin and Bitcoin is that the infinite number of Dogecoins can be produced.
The Dogefather
Thanks to Elon Musk, Dogecoin is up more than 800% over the last month. This self-proclaimed "CEO of Dogecoin" never hides his love of Dogecoin, dubbing it "the people's crypto".
Many believe that there is a strong correlation between Musk's tweets and the coin's price movements.
He has talked up the coin over the past few months, including the announcement on May 9 that it'll be used to pay for a new moon mission launched by his SpaceX rocket company next year.
What happened?
According to CoinMarketCap, last week's surge pushed Dogecoin's market cap to over $70bn, making it become the fourth-most valued coin.
However, after Musk called Dogecoin a "hustle" on Saturday Night Live, Dogecoin lost more than a third of its price on Sunday.
On Wednesday, Elon Musk tweeted again, saying Tesla will stop using Bitcoin as a form of payment over concerns of the cryptocurrency's impact on fossil fuels.
The announcement led the price of Bitcoin to drop over 13%, and Dogecoin plummeted by 20%, sliding below 40 cents per coin.
One day later, the "Dogefather" is back on his favorite. Mr. Musk tweeted "Working with Doge devs to improve system transaction efficiency. Potentially promising."
Just 15 minutes later, the total value of Dogecoin soar by more than $10 billion.
Just 15 minutes later, the total value of Dogecoin soar by more than $10 billion.
Opinions
Supporters of Dogecoin believe that investors should remain committed despite the major setback.
The setback is likely caused by investors opportunistically, and it is still a good time to take some profits on the speculative surge in doge.
Except Elon Musk, Mark Cuban, the owner of the Dallas Mavericks is also a supporter of Dogecoin.
"As long as more companies take doge for products/services, then doge can be a usable currency because it may hold its purchasing value better than a $ in your bank,” Cuban said in a May 2 tweet. "If interest rates skyrocket or the amount spent falls or stagnates, so will doge. Yes, a joke is now legit.”
"All investors hold some digital coins, even if it's just a small slice of one's portfolio," said Ben Weiss, co-founder and CEO of CoinFlip, one of the largest bitcoin ATM companies in the U.S.
However, he also warned: "Never invest anything you aren't willing to lose."
On the other hand, some view the asset as the perfect example of an asset bubble.
Barry Silbert, a power player in the digital asset sector, said he's betting against Dogecoin and is urging investors in one of the hottest trades in 2021 to convert their doge holdings into Bitcoin.
He shorted Dogecoin because he believes the price will fall.
The reason is Dogecoin doesn't have any fundamental purpose. Its market capitalization is bigger than large companies like Twitter and Ford, but it doesn't have any utility, and it doesn't have any paid staff.
Supporters of Dogecoin believe that investors should remain committed despite the major setback.
The setback is likely caused by investors opportunistically, and it is still a good time to take some profits on the speculative surge in doge.
Except Elon Musk, Mark Cuban, the owner of the Dallas Mavericks is also a supporter of Dogecoin.
"As long as more companies take doge for products/services, then doge can be a usable currency because it may hold its purchasing value better than a $ in your bank,” Cuban said in a May 2 tweet. "If interest rates skyrocket or the amount spent falls or stagnates, so will doge. Yes, a joke is now legit.”
"All investors hold some digital coins, even if it's just a small slice of one's portfolio," said Ben Weiss, co-founder and CEO of CoinFlip, one of the largest bitcoin ATM companies in the U.S.
However, he also warned: "Never invest anything you aren't willing to lose."
On the other hand, some view the asset as the perfect example of an asset bubble.
Barry Silbert, a power player in the digital asset sector, said he's betting against Dogecoin and is urging investors in one of the hottest trades in 2021 to convert their doge holdings into Bitcoin.
He shorted Dogecoin because he believes the price will fall.
The reason is Dogecoin doesn't have any fundamental purpose. Its market capitalization is bigger than large companies like Twitter and Ford, but it doesn't have any utility, and it doesn't have any paid staff.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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DAVIDJ94 : Much Wow
sonofatan : Well said. Let's see how dogecoin will react to this news.
董事长 : Hi... poor Billy Sillybert
董事长 : Ha... poor Billy Sillybert
M wk : daylight money laundering, amazing ha...
人类高质量男士 : Going to up $500 per coin
Firdie : Wow great!!
ImBayBay : Doge
DR Chops : It is still amazing how people dive into this on the back of zero utility and fundamentals investing in a story. Has the makings of the dot com debacle. But then what the heck, let’s try with the money which I don’t need , given to me during the helicopter drops. Who knows, I make enough to buy a pair of AirPods Pro.
BooNBoX : Wow!!
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