In the last few days, Dogecoin has pumped more than 100% and people are expecting to see more of it. Because of the main big event that happened this huge spike is seen and to know about that you will have to read this blog till the end.
What is Dogecoin?
Dogecoin is a digital meme currency whose inspiration was taken from a Japanese dog breed “Shiba Inu.” This meme currency was created as a joke but it reached high demand from the crypto community and gained a good amount of users’ trust. Billy Markus and Jackson Palmer were the developers of Dogecoin and launched it on 6th December 2013.
This was the first ever meme cryptocurrency and became the motivation for the rest. The official token of Dogecoin is called Doge and is the 8th cryptocurrency according to the coinmarketcap.
Just like Bitcoin, it works on the mechanism of Proof of Work (POW) which means miners validate the transactions and earn the rewards through a competitive mining process. At the moment DOGE is trading at the value of 0.520 (₹10.21), with a market cap of ₹1,354,335,395,563.
Even after the 115% hike, this is not the highest value of Doge as the highest value was $0.73 on 8th May 2021. Around that day Musk hosted Saturday Night Live, and it reached its peak. Musk referred to cryptocurrencies as the “hustle” as well as the “future of currency.” That statement had a detrimental effect on the price, and as a result, Dogecoin fell 35%.
Connection of Elon Musk and Dogecoin?
The dogecoin community has given the nickname “Dogefather” to Elon Musk as he is a big fan of overall meme coin and out of that Dogecoin is his favorite. Over the years Elon has continuously shown his support for Dogecoin through his tweets, he even talked about it on shows, social media lives, etc.
Elon’s first tweet
Elon was in support from good time but he tweeted for the first time in April 2019 which said:
“Dogecoin might be my fav cryptocurrency, It’s Pretty Cool.”
And that led to a good spike in the price of DOGE. It was also noted that every time Elon talked or made tweets about cryptocurrency, the price of Dogecoin fluctuated.
Musk announced he will help the developer to develop DOGE more
In 2021 Elon told people that he is continuously working as a Dogecoin developer since 2019 to help in developing it more.
Musk’s promise to send DOGE to Moon
In spring 2021 the price of the DOGE went to $0.69 and during that time Elon went to Saturday Night Live. Even before the show, Elon tweeted about DOGE multiple times. After that live Musk set up a mission of going to the moon that will be entirely funded by Dogecoin. He made a tweet on 9 May 2021 saying;
“SpaceX launching satellite Doge-1 to the moon next year”.
According to Samuel Reid, CEO of the company which is managing this Doge 1 Mission, the work is still in process for this to happen.
Tesla Accepted Crypto for payment
In Jan 2022 Elon tweeted about the announcement that Tesla will be accepting Bitcoin for payments. But this couldn’t last long as almost after 2 months the company shut down this deal.
But in May, SpaceX announced that they will be accepting Dogecoin for making payments for the company merchandise.
Elon was sued for the Dogecoin pyramid scheme
In June 2022, Elon Musk was sued by a man for the allegation of running a pyramid scheme of Dogecoin. The case was for $258 billion but it could not be proved correct as the only base of this case was Elon supported the Dogecoin which influenced the meme coins prices.
Why did it got pumped this much?
On 25 April 2022, the twitter official announced that they are willing to sell the Twitter platform to Tesla and SpaceX owner Elon Musk for approximately $44 million. But later on, Elon abandoned the deal on the issue of not being provided accurate information about the bots or spam accounts present on the platform. This led to a legal lawsuit in which Twitter authority demanded for Elon complete the deal and buy the platform as discussed.
After all this drama Elon finally bought Twitter on 28 October and became the new owner of the Twitter platform while firing the 3 executives of the company including the CEO, Parag Agrawal.
When Elon first presented the idea of buying Twitter he talked about his plans of making the Twitter platform cryptocurrency friendly and which gave big hopes to the crypto community. As people were already aware of the enthusiasm of Elon about cryptocurrency, especially Dogecoin. As soon as the news of Elon taking over the platform, another news of “allowing the users to buy and sell NFTs through tweets” was announced by Twitter officials. This proved that Musk will be working on making a cryptocurrency-friendly platform and people started buying Dogecoin.
And with this, the prices of Dogecoin started to hike and a whopping hike of 115% was seen in the DOGE prices.