Elon Musk, the CEO of Tesla and SpaceX, posted a sarcastic tweet about the meme cryptocurrency Dogecoin (DOGE). It is not the first time Musk has trolled the crypto and Bitcoin (BTC) communities with humorous remarks.
He tweeted “it’s inevitable,” with an image showing the “dogecoin standard” dwarfing the global financial system.
Elon Musk tweets a Dogecoin meme. Source: Elon Musk Twitter
Responding to a sarcastic tweet asking Musk for lost Bitcoin, Musk wrote:
“Excuse me, I only sell Doge!”
The price of DOGE rose by 14% on the day. Source: TradingView.com
After Musk’s viral tweet, the price of Dogecoin rose from $0.003052 to $0.003433, by around 14%. Whether DOGE rose as a result of Musk’s tweet cannot be certain. Unlike top cryptocurrencies, DOGE has relatively low liquidity, which leaves it vulnerable to short-term pump and dumps.
Musk continues to lightheartedly entertain the crypto community
In recent weeks, a viral TikTok sensation sent the price of Dogecoin surging. Data from CoinMarketCap shows Dogecoin rose from $0.0023 to as high as $0.005 within merely three days from July 6 to 9 as a result.
Musk’s tweet appears to be in reference to Dogecoin's sudden increase in popularity in the mainstream. The unexpected spark in interest about the cryptocurrency on TikTok garnered significant media coverage.
Throughout the past year, ever since Musk declared that his favorite cryptocurrency is Dogecoin, he has continuously tweeted about crypto.
Musk said in April 2019:
“Dogecoin might be my fav cryptocurrency. It’s pretty cool.”
In mid-2019, Musk won a poll to become a self-proclaimed CEO of the meme-inspired cryptocurrency. That only propelled Musk to write even more sarcastic jokes about cryptocurrencies.
In May, in response to J.K. Rowling’s tweet about Bitcoin, Musk wrote:
“Pretty much, although massive currency issuance by govt central banks is making Bitcoin Internet money look solid by comparison.”
He added:
“I still only own 0.25 Bitcoins btw.”
Is Musk tweeting about crypto beneficial for the industry?
Musk seemingly enjoys entertaining the crypto industry with the occasional meme tweets. He quite clearly is not a serious investor in cryptocurrencies, unlike the likes of other popular figures such as Paul Tudor Jones.
But, there is a silver lining with having arguably one of the most high-profile and influential CEOs in the U.S. tweet about crypto regularly.
Cryptocurrencies, as an asset class, still remain as a niche market for many investors. The market capitalization of Bitcoin, the most dominant cryptocurrency in the global market, is smaller than that of Tesla.
Dan Tepiero, the founder of DTAP Capital, wrote:
“Not looking like a top in TSLA. In fact, just broke out 7 days ago. At this rate, Elon Musk becomes world's richest person in a few months. The market is always right. What is it telling us about the future? Net worth now equal to 25% of all Bitcoin. Maybe he buys a few?”
For an asset class in an early phase of growth, cryptocurrencies could benefit from the publicity Musk brings to the industry.