Dogecoin jumped to seventh place among world cryptocurrencies on Tuesday. Over the last 24 hours, the exchange rate increased by almost 30%, and over 40% during the week. The market value of all dogecoins is already $14.2 billion. It is still far from bitcoin, because the value of the leading cryptocurrency is USD 546 billion. But why so much growth in a rather calm market?
If we look at Twitter then everything becomes a bit more clear. On a website owned by Elon Musk the characteristic dogecoin logo, i.e. the muzzle of a shiba inu dog, turned into a blue bird logo on Tuesday. The new logo appears in the upper left corner of the website and when reloading in the middle of the page.
The dogecoin logo appears on TT instead of the blue tick
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Jacek Frączyk / press materials
What’s more, on his TT profile, Musk posted a meme in which the photographed dog informs the user of the website with a characteristic bird on the screen that it is an old photo.
For some it’s a joke, for others it’s a sign that Elon Musk is betting on the dogecoin cryptocurrency. Another sign anyway. Twitter did not respond to CNBC’s request for comment.
How Musk pumped up the cryptocurrency rate
Musk started advertising dogecoin years ago. He occasionally tweets about the token, which was created as a joke in 2013, causing volatility in the market each time. The joke turned into a serious player on the cryptocurrency market, which, by the way, does not speak well of the entire market.
In December 2021, Tesla announced that it would accept dogecoins for certain goods. At the time, Musk tweeted that Tesla would “see how it goes”. After that tweet, the stock went up 20%. The fact that the cryptocurrency is traded and paid for real goods is an important indicator of its value.
In January 2022, when Musk announced on Twitter that dogecoin payments were active, the cryptocurrency jumped 15 percent. Tesla has digital assets including bitcoin on its books and still accepts doge coins as payment for some goods.
– We have not sold any of our dogecoins. We still have them,” Musk said during a salary talk last year. He also indicated that he also personally owns dogecoins.
Lawsuit for dogecoins
But he was sued for manipulating the cryptocurrency rate. On Friday, lawyers for Twitter and Musk asked a federal judge to dismiss the $258 billion lawsuit. from 2022, in which the billionaire was accused of manipulating the price of dogecoin i raising its price by over 36 thousand. percent
Musk’s lawyers described his public statements about the coin as “innocent and often silly tweets” in court on Friday. By the way, why dogecoin is growing right now, you would have to ask the buyers. They buy only because the billionaire asked to change the logo of his social networking site from a bird to a dog? This says a lot about the cryptocurrency market.
