Dogecoin, one of the most popular parody coins on the crypto market, is in tears today. At press time, the cryptocurrency is up 13%. The move comes after Tesla CEO Elon Musk reiterated his support for the cryptocurrency on Tuesday at the Qatar Economic Forum in Doha.
Musk told the Qatar Economic Forum that he is buying and supporting it because people “not that rich” have asked him to, according to Bloomberg News.
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Dogecoin gets some love from Musk
Musk remarked during the forum in an interview with Bloomberg News Editor-in-Chief John Micklethwaite:
“I just know a lot of not so rich people who pushed me to buy and support Dogecoin. I answer these people.”
The coin started as a joke in 2013 but quickly grew into a major cryptocurrency thanks to a dedicated community and inventive memes.
Dogecoin is vulnerable to devaluation as there is no limit to the number of DOGE units that can be created, unlike other cryptocurrencies.
In 2017, the price of Dogecoin was $0.0003. By June 1, 2022, its price had increased by about 40,000% to $0.10. DOGE is currently trading at $0.063348, up over 14 percent at the time of this writing, according to data from Coingecko.
Musk also stated that his employees asked him to promote the coin. “They encouraged me to support Dogecoin, which I did,” the billionaire explained.
In addition to Dogecoin, the founder of SpaceX pointed to support for other cryptocurrencies. Musk said in October that he owns bitcoin, ether and DOGE.
DOGE total market cap at $8.5 billion on the weekend chart | Source: TradingView.com
Musk’s comments on social media Move DOGE
Dogecoin changes frequently based on Musk’s comments. On Monday, it surged 8.5% in 24 hours from a near-record low after the CEO said he would continue to promote and buy the meme token in the face of a major cryptocurrency sell-off.
The dog-themed currency plummeted last May after Musk called it “hype” on Saturday Night Live.
Musk recently stated that Dogecoin could compete with bitcoin and be used for payments. In January, Tesla said it would begin accepting Dogecoin payments for some products, implying more could be added “down the road.”
Last week, Musk was sued for $258 billion by a Dogecoin investor who claimed the tycoon was involved in a “pyramid scheme by promoting the Dogecoin cryptocurrency.”
Meanwhile, Musk revealed last week that if his attempt to buy Twitter is successful, crypto payments will be integrated into the platform.
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Featured image from NDTV Gadgets 360, chart from TradingView.com
Credit : www.newsbtc.com