The price of the meme-inspired cryptocurrency Dogecoin (CRYPTO:DOGE) rose as much as 8% at one point this morning from levels seen last night, after several recent tweets from Tesla CEO Elon Musk.
Musk and his large social media following have been major contributors the huge rise in Dogecoin, which at one point touched roughly $0.72 before falling with the broader cryptocurrency market. Dogecoin currently trades just under $0.27.
Recently, in honor of Musk’s 50th birthday, a person sent a balloon of a Shiba Inu dog, the mascot and meme associated with Dogecoin, into space.
Musk a few days ago announced on Twitter that he had a new Shiba Inu named Floki, and yesterday, Musk tweeted out in support of proposed upgrades to the Dogecoin blockchain that would drastically cut transaction fees.
While all the Shiba Inu news may sound crazy, the power of the internet is all part of what has driven Dogecoin higher in the first place, so it’s not a shock to see the token rising on news like this.
As I recently wrote, while I certainly enjoy following the Dogecoin bonanza and own a little myself, I do not see Dogecoin as particularly unique in the world of cryptocurrencies in terms of its capabilities.
The most important news recently, in my opinion, is surrounding the upgrade that would cut fees. With Musk firmly behind Dogecoin, perhaps it’s possible that he and the developers will improve it from a technical standpoint to the point where its capabilities are unique among other cryptocurrencies. But until there is more proof of that, I am not planning to purchase any more in the near future.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.