The famous billionaire entrepreneur and Tesla CEO Elon Musk have become well-known for supporting various cryptocurrencies, particularly Bitcoin and DogeCoin. Recently, when Musk tweeted about DogeCoin, the value of the cryptocurrency bounced.
— Elon Musk (@elonmusk) April 3, 2023
The value of DogeCoin has gained 30%, reaching a trading price of $0.31, which is higher than its previous value from just 24 hours ago. The rise was triggered by Musk's tweet, which featured an image of a dog on a spacecraft with the caption "Doge." Numerous investors construed the tweet as an endorsement of DogeCoin and reacted by purchasing the cryptocurrency in large numbers.
Musk's tweet highlights how the influence of celebrities and influencers impacts the cryptocurrency market. Their large social media following can affect markets with a single post. However, this situation also brings up worries regarding the possibility of manipulating the market and the volatility of cryptocurrency markets. Nevertheless, many investors and traders remain optimistic about cryptocurrencies.
According to CoinMarketCap.com, dogecoin is the eighth-most valuable cryptocurrency, with a market cap of over $13 billion.
Twitter and Elon Musk's attorneys filed a joint motion on Friday to dismiss a $258 billion lawsuit filed in 2022. The lawsuit had accused the billionaire of manipulating the price of DogeCoin and causing it to increase by over 36,000%.
The lawsuit was filed after the Twitter logo was temporarily replaced with a shiba inu image, and Musk shared a meme about the change with his 133.5 million Twitter followers. However, the image only appeared for some users of the social media platform, including those on its website.
A group of investors initiated the lawsuit, alleging that Musk's tweet resulted in financial damages for them.
The popularity of DogeCoin, combined with the support of Elon Musk, has again catapulted cryptocurrencies into the limelight. Despite this, similar to any other investment, investing in DogeCoin comes with risks, such as its highly unstable nature and the possibility of sudden market crashes, and huge reward potential for those willing to take the risk.