Dogecoin jumps more than 20% in minutes on renewed Elon Musk backing

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Around 5:30 a.m. ET today, Elon Musk woke up and chose peace. This time, rather than spouting his concerns about the environmental impact of crypto mining, or otherwise disparaging crypto, he chose to once again provide Dogecoin (CRYPTO: DOGE) speculators with something to cheer.

Elon Musk tweeted, “Tesla will make some merch buyable with Doge & see how it goes.” This single tweet resulted in Dogecoin jumping from $0.1593 to $0.1949 within a few minutes. As of 8:20 a.m. ET, DOGE trades at $0.2021, having peaked at $0.2129 earlier this morning. This amounts to a move of 24.3% over the past 24 hours.

So what

The timing of this move is certainly interesting for Musk. A day after being named the Person of the Year by Time magazine, perhaps Musk is feeling invincible. Or just happy. Or both.

Whatever the case, it’s also clear that Musk is currently in the midst of a number of battles right now. Crypto may be the one frontier Musk can win at — simply by issuing a tweet. This move to offer Doge merchandise is likely less about the revenue opportunity and more about changing the topic of discussion when it comes to Elon Musk.

Musk continues to battle Raptor engine production issues at SpaceX. Tesla has been embroiled in what has turned into multiple sexual harassment lawsuits. And Elon Musk has proven to be his own worst enemy, picking fights with the Securities and Exchange Commission and politicians like Bernie Sanders frequently in recent months. 

Now, all anyone is talking about when it comes to Musk is his love for dog-inspired meme tokens.

Now what

For investors in Dogecoin, perhaps an inundated Elon Musk is the best thing for this token. Should Musk focus more of his tweeting energy on this meme token, investors stand to benefit.

There’s seemingly no real value to this tweet from a purely fundamental perspective. Dogecoin stands to benefit in no other way from Elon Musk’s merchandise campaign, other than to raise awareness for this token. That said, as the original meme token, Dogecoin’s notoriety has proven to be the primary driver of its success. Accordingly, speculators now have something to cheer, once again. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Dogecoin jumps more than 20% in minutes on renewed Elon Musk backing appeared first on The Motley Fool Australia.

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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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