Joke cryptocurrency Dogecoin and its 'roller coaster' relationship with Elon Musk

After Elon Musk was chosen by Donald Trump to head the Office of Government Efficiency (DOGE), the price of the cryptocurrency Dogecoin skyrocketed.

According to Coinmarketcap, the cryptocurrency Dogecoin (Doge) was worth $0.11-$0.14 in the months leading up to the US election but immediately doubled after Mr. Trump was elected, reaching $0.30 on November 12. Two days later, the meme coin, also known as the "joke" cryptocurrency, continued to rise to a peak of $0.40 when billionaire Elon Musk became the head of the Government Efficiency Board, similarly abbreviated as DOGE.

Dogecoin cryptocurrency hits all-time high after Elon Musk is appointed to the Government Efficiency Board (DOGE). Photo: Coinmarketcap

Dogecoin is a cryptocurrency created as a joke by experts Billy Markus and Jackson Palmer to criticize the Bitcoin craze since 2013. It is inspired by the Doge meme with a Shiba Inu dog with a confused face. It is based on Litecoin, has a faster mining speed compared to other cryptocurrencies and is not limited like Bitcoin.

Elon Musk, one of Mr. Trump's closest allies, is well known for his support of Dogecoin. He has repeatedly posted related information that has caused Dogecoin players to go on a 'roller coaster' as the price keeps going up and down.

In 2021, the billionaire played a character on the TV show Saturday Night Live with the nickname Dogefather. However, when asked if Dogecoin was a joke, he replied: "Yes, it is a joke" and the cryptocurrency immediately dropped nearly 40% .

That same year, the American billionaire created a poll on Twitter asking whether to accept Dogecoin for Tesla purchases, pushing the price of the cryptocurrency up dozens of percent. He announced that he would not sell Dogecoin and was working with developers to "improve the efficiency of the transaction system". The price of meme coin immediately increased by 15% and exceeded 0.5 USD per coin.

In April 2023, he changed the Twitter logo to Doge, causing the cryptocurrency's price to jump more than 20%. Three days later, he returned to the social network's blue bird icon, and Doge immediately dropped 10% from $0.105 to $0.079 per coin.

In many other posts on social media, the Tesla CEO has repeatedly said that he really likes this cryptocurrency because it is "very funny and has pictures of dogs". However, the American billionaire has also caused controversy, some believe that he constantly mentions Dogecoin as a tactic to attract attention, causing the community to worship him.

Early last year, Musk was sued by a group of investors who accused him of using his influence on Twitter to manipulate the price of Dogecoin, causing them to lose billions of dollars. The group said Musk intentionally inflated the meme coin's price by 36,000% over two years, then let it fall.

In mid-August, Elon Musk was acquitted by a court on the grounds that his Twitter/X posts were “merely flamboyant.” The judge said it was “incomprehensible” that the plaintiffs would invest based on social media messages and then sue the posters for market manipulation.

Elon Musk and the Dogecoin logo. Photo: Fox Business

Not only Dogecoin, but cryptocurrencies in general are also getting higher in price after the US elected its 47th President. Bitcoin also reached a high of over $93,000 on November 14 after starting the year at under $43,000.

According to AP, the excitement of the market is due to the President-elect's public support for cryptocurrencies. Having once commented that cryptocurrencies are "fraudulent", but during the election period, Donald Trump suddenly declared that he would become the " cryptocurrency president ", even wanting the remaining Bitcoins to be mined in the US. According to experts, he could elevate this field.

“Donald Trump’s second White House victory is a defining moment for the crypto industry, not just in the US but globally,” Boris Bohrer-Bilowitzki, CEO of UK-based blockchain company Concordium, told CoinTelegraph on November 11.

Bohrer-Bilowitzki also believes that the cryptocurrency market will react positively, at least until Mr. Trump takes office early next year. "The cryptocurrency community expects the new president to take a softer stance on management, ensuring that policies do not slow down or inhibit the development of this field."