The November 1st Elon Musk Doge tweet isn’t the first time that the Tesla CEO has given a jolt to the meme coin. But now that Elon Musk’s Twitter acquisition is complete, this may be the first time that the world’s richest social media mogul can generate material change for shiba inu themed crypto tokens and coins.
What started off as a joke has quickly become a multi-billion dollar asset that retail traders love. Surprisingly, Doge actually has a rich history of interesting price action and unprecedented engagement from crypto communities.
To fully understand how high this thing can go and what drives these pumps, let’s take a look back at the history of crypto’s favorite meme coin.
Dogecoin: Humble Beginnings
Dogecoin was officially launched on December 6th, 2013, and despite the light-hearted nature of the coin itself, it was actually founded by individuals with strong backgrounds in computer science and economics.
The two main players were Jackson Palmer, a former Adobe software engineer, and Billy Markus, a former IBM software engineer. So, despite being marketed largely as a joke for the community, the underlying tech and team were solid.
Now there is a new, although unofficial, member of the team who has more influence on price action than any single trader on Earth: Elon Musk. And with recent headlines being dominated by Elon’s potential buyout of Twitter, Dogecoin speculators are back in force; but why?
Let’s take a look at the timeline of Elon’s impact on Dogecoin, and ask the question: Why is it different now?
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Elon Musk: Dogecoin To The Moon (A Timeline of Musk’s Impact on Doge)
All the below information is sourced directly from Twitter:
- Musk’s first Dogecoin-related tweet occurred on April 2nd, 2019. Musk tweeted that the meme coin “might be his favorite cryptocurrency.“
Though the tweet (which came just one day after April Fool’s day) was largely ignored, it sparked a more than 50% rally in the niche crypto.
- More than a year later, Musk made another Doge-related tweet on December 20, 2020. Musk tweeted “One Word: Doge“.
This early Christmas present to Doge enthusiasts spurred another rally in the meme coin, setting the stage for Dogecoin to break above a penny for the first time (a feat that lives inside the dreams of many Shiba Inu coin holders).
- This kicked off a series of Dogecoin-related tweets by Musk. The barrage began with a “Vogue” parody meme (seen below). The meme was followed by tweets like, “Dogecoin is the people’s crypto” and “no highs, no lows, only Doge.” As Musk continued to tweet about the meme coin, Doge continued its parabolic ascent.
- On April 15, 2021, the price of Dogecoin rose by more than 100% after Musk tweeted an image of Joan Miró’s Dog Barking at the Moon painting captioned “Doge Barking at the Moon.”
- In the ultimate “sell the news” moment, Dogecoin fell as much as 29.5% to US $0.49 during Elon Musk’s Saturday Night Live appearance — an event that many had hoped would be the ultimate opportunity for the Tesla CEO to push the coin.
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Dogecoin All-Time High: Aftermath
Several more Dogecoin tweets came following Musk’s SNL performance. In May of 2021, the price of Dogecoin rose by 11% after Musk tweeted a Doge-related meme, and another 10% after Musk created a Reddit link for users to submit proposals to improve the cryptocurrency.
On December 14th, 2021 — just six days shy of the anniversary of Musk’s “One word: Doge” tweet, Elon announced that Tesla would accept the currency as a means of payment for Tesla merchandise, generating another 20% pump.
While Elon’s public support for Dogecoin has never wavered, the dog-themed meme coin back was never able to reclaim its all-time high. But recently, new developments had reignited hope for Doge HODL’ers.
Elon Musk Doge Tweet Following Twitter Acquisition
On November 1st, just days after Elon Musk’s acquisition of the social media platform Twitter, the “Chief Twit” (his official title at the company) published this cryptic tweet.
This kicked off another rally in Dogecoin, as well as another crypto with a shiba inu mascot — Shiba Inu Coin. But is there anything that separates this Tweet from the many others that have been fired off from Elon’s account?
Elon and Doge: Is it Different This Time?
Musk has lofty aspirations for Twitter. He has said he plans to quintuple the social media giant’s revenue by 2028. How is Musk going to do it? Three key ways:
- Introducing a (pricy) fee for Twitter blue check verification
- Adding a payment processing segment to the company
- Turning Twitter into a “super-app”, like the Chinese WeChat
These plans may sound far fetched, but the former founder of Paypal is probably the best fit for the job. And some Dogecoin speculators believe that Elon Musk’s favorite crypto has a place in those plans.
If Musk continues to drop ambiguous tweets about the dog-themed cryptocurrency, expect to see the rally in Dogecoin continue — even in the face of a macro-bearish environment.