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In 2020, even a tweet can set the markets ablaze. It happened yesterday morning, December 20, when the CEO of Tesla, Elon musk, gave Twitter its bullish sentiment on the Dogecoin, the cryptocurrency created in 2014 from a popular meme. Outcome? + 25% in a few hours.
In addition, it is not the first time that Elon Musk squeaks have tried to draw investors’ attention to the asset: in July, in fact, its first endorsement, with the cryptocurrency that had registered an increase of 14%.
But what is this Dogecoin? And why does Elon Musk talk about it? Here is an analysis of the origins and current performance of the cryptocurrency.
What is Dogecoin, the social cryptocurrency Elon Musk talks about?
In the background, it all started as a joke. For years, the internet community has been posting a meme, known as a Doge, on the net that represents a Shiba Inu, a breed of dog of Japanese origin. Hence the inspiration for the creation of a cryptocurrency, the Dogecoin, a kind of parody of Bitcoin.
And there is likely to be a veil of irony in Elon Musk’s latest tweet as well, the latter generally entertaining users with forecasts on the markets, often imaginative. On the other hand, a few minutes before paying tribute to Dogecoin on Twitter (“One word: Doge”) The founder of Tesla had posted some satirical cartoons about Bitcoin.
But in this precarious balance between serious and funny, investors have reached into their portfolios to take a share of the asset. In fact, in a few hours cryptocurrency posted a 25% increase, reaching a price of $ 0.0046. Twelve hours after Musk’s tweet, the Dogecoin closed at + 15%.
This is a positive trend that confirms the ability of the South African entrepreneur born in influence markets with a simple click. Dogecoin remains at a sidereal distance from the most noble cryptocurrencies – Bitcoin is now moving to $ 22,748, for a market capitalization of 448 billion, but it seems to have long since abandoned that parodic nature that characterized it in the early stages.
Thanks also to the intense promotional campaigns on the Chinese social network Tik Tok, the virtual currency has achieved strengthen your credibility– According to CoinMarketCap estimates, Dogecoin is ranked forty-one in the ranking of the best decentralized finance tokens (DeFi), while its market capitalization is $ 574 million. Not bad, so it was supposed to be just a joke.
