“A very well supporter of cryptocurrencies, Musk has weighed in regularly on the recent frenzy of retail investment, driving up doge coin prices and shares in the U.S. video game chain GameStop.”
If you’re like me, a complete video game like an online casino, nerd to the core, you probably had an advantage fundamentally understanding cryptocurrency when it was first widely introduced. For years, gaming studios and publishers all over the world were introducing their own in game digital currency. You could then use the currency in-game, whether it be for costumes or slight opponent advantage. Does it sound familiar?
The cryptocurrency market is worth more than $1 trillion now! What actually began out as a futuristic concept a decade ago has come a very long way. One such asset that makes headlines is the comically named Doge coin.
What’s A Doge Coin?
Doge coin displays the face of the Japanese Shiba Inu dog, which originated as a meme of a dog with an internal dialogue printed in a rainbow comic sans font and poor English. The meme started in 2010 and was ended up voting in the top ten memes of the year in 2013.
The same year, the Doge coin cryptocurrency was raised. It was co-founded by Billy Markus, IBM software engineer, and Jackson Palmer, Adobe software engineer. It’s a decentralized digital peer-to-peer currency. They created it to make a payment platform that was immediate, fun, and free of fees. So, they took the original “Doge” meme as their logo and namesake, taking the mickey out of cryptocurrencies like Bitcoin and Ethereum.
The Elon Musk’s Influence
Musk’s sharing of a picture of Doge coin on January 28 did not have the instant effect —but the impact was still substantial.
Approximately four hours after the tweet, Doge coin’s price almost nearly tripled before losing nearly 50 percent of the new high in the next two hours. Musk’s Doge coin tweet helped bring about a brief trading outburst five hours just after the tweet.
Musk’s 20 December 2020 tweet—and changing his Twitter bio—has had one of the major effects of his Twitter activity.
The average trading volume of DOGE/USDT in the 30 minutes prior to the event was approximately $1,942 per minute, with an estimate of 9 trades per minute. During the 30 minutes following the tweet, the average trading volume per minute was around $299,330, with 775 transactions per minute.”
Why does he do this have many speculations: Is he going to step down from Tesla? Is he on a self-destructive collision course, is he investing in Doge, is he teasing the US Securities and Exchange Commission (SEC), is this his way to help the underdog to get to the top? It’s been since Tesla invested $1.5 billion in bitcoin, so it turns out that his involvement in crypto is legit, even if he’s just having some fun with Doge coin.
There’s no doubt that he’s a fascinating character, and it’s unlikely that any of us will know how his visionary mind works.
Comedy act or not, his tweets are moving markets. Doge coin’s value shot up 800 percent in 24 hours, fueled by a Reddit board pushing Doge coin to be the crypto variant of GameStop.
And further enhanced by Musk tweeting a parody of a Vogue magazine cover involving a dog and the caption ‘Dogue.’
Before Trading, Investors Looking To Concentrate On Musk’s Tweet Should Analyze:
. Pre-tweet business activity.
Was there uncertainty in trading hours leading up to a Musk tweet or event? If so, it is suggested that the impact of a Musk tweet would not be as large as it would be if the trading activity were less volatile.
There is a timeframe in which a Musk tweet has an impact. It may be too early or too late to get into the trading frenzy of the Elon Musk tweet.