On Friday, Dogecoin soared after Elon Musk said he was collaborating with the cryptocurrency’s developers to boost its payment performance.
Tesla CEO Elon Musk, who previously said that his Dogecoin tweets could not be taken seriously, said on Twitter that he was “working with doge developers to boost machine transaction speed” and that the work was “potentially positive.”
Billionaire Elon Musk has become a vocal advocate of the meme coin, tweeting about it regularly. He just tweeted that he intended to send Doge to “the stars” in 2022 on a SpaceX spacecraft. Geometric Energy Corporation, a Canadian firm, is collaborating on the “DOGE-1 Mission to the Moon.”
DOGE’s Musk-Driven Rise
Crypto exchange sites and customers have become more interested as a result of Musk’s publicity. Following a similar move by rival eToro, famous exchange Gemini declared support for Dogecoin last week.
Because of Musk’s interest, the cryptocurrency has risen over 1,500 percent since the beginning of the year. According to CoinMarketCap, it is currently the fourth-most valuable coin, with a market capitalization of more than $70 billion.
Before falling down to earth, the currency reached new lows ahead of Musk’s performance on Saturday Night Live (SNL). Analysts had predicted that the SpaceX creator will discuss cryptocurrency on the broadcast, sending prices soaring. Instead, the coin dropped almost 25% as a result of his plug.
Musk had previously hinted that he was investigating alternate cryptos that Tesla might consider, asking his 54.5 million Twitter followers whether they thought Tesla could accept Doge as payment.
Though Musk is warming to Dogecoin, he is growing dissatisfied with bitcoin. After abruptly withdrawing Tesla’s funding on Thursday, he sending Bitcoin and other cryptocurrencies into a tailspin. Tesla’s sudden leap came after Musk expressed concern about bitcoin mining’s environmental effect.
The Lowdown on DOGE
Dogecoin is a cryptocurrency with a stylized image of a Shiba Inu on the top, influenced by the famous meme Doge. Dogecoin was launched as a novelty currency on December 6, 2013, and by January of the next year, it had a market cap of $60 million.
Dogecoin has the highest reserve of any asset, with 100 billion coins in mid-2015 and 5.2 billion coins introduced annually after that. As of June 2015, it had mined one billion Dogecoins.
DOGE is exchanged for real-world products such as Reddit and Twitter by members.
Dogecoin is based on the well-known Doge cryptocurrency and features an icon influenced by Internet memes. On December 6, 2013, Dogecoin debuted on the market as a “joke currency” with a market capitalization of $60 million.
The Dogecoin project has a much wider initial coin distribution: 100 billion coins were available at the start of the year, and another 5,256 billion at the end. Dogecoin had been mined one billion times as of June 30.