Elon Musk continues his peculiar tweets about altcoins like Dogecoin, but investors should treat them very carefully. It looks like the days of easy money from the coin pumps are gone, but Dogecoin remains in the top 10 cryptocurrencies list.
They say all good things come to an end, and the Elon Musk-inflicted Dogecoin pump is no stranger to that.
“Maybe if it sees a Shiba Inu, the car renders a Dogecoin,” said Musk in a reply to a tweet Tueasday, with the original post simply stating: “#TeslaVision can indeed see dogs!.”
The prices, uncharacteristically, however, budged little. DOGE moved from $0.2008 to as much as $0.206 before slightly correcting. But the move was unlike how the market reacted to Musk’s Dogecoin tweets (as lately as a few months ago)—showcasing a general trend of such moves being priced out as they became commonplace.
Dogecoin is a meme-inspired altcoin that began as a joke in 2013 but recently surged in popularity. To even its co-founder’s surprise, it’s now one of the top 10 cryptocurrencies by market value and hit an all-time high of nearly 74 cents in May.
This is the result of many factors, including social media buzz by big names like billionaire Elon Musk. The SpaceX and Tesla CEO has been a frequent supporter of Dogecoin on Twitter but has also tweeted about other altcoins, like Baby Dogecoin and Shiba Inu.
Though it’s not clear whether Musk’s support is serious, his tweets mentioning these altcoins have seemed to impact their price and value.
Elon Musk gained notoriety in the crypto space over the past year after incessantly shilling in late-2020 and early 2021.
The game was usually as follows: Musk often mentioned Dogecoin (as a meme, or sometimes as a feature), with DOGE pumping tens of percent in the minutes afterward. The first few such tweets surged DOGE over 100%, eventually powering the token to a peak price of $0.70 (at a $86 billion market cap).
It’s unclear whether or not Musk personally benefited from the moves. But for sure, the tweets gradually lowered in their market impact over time, with initial fascination in crypto circles about Musk and DOGE slowly turning downward. The 100% gains slowly simmered down to 70%. Then 50%. Then 20% and then 10%. And they are now down to a small fraction of their initial effect.
As such, as one of the world’s richest men, Musk has little to gain from pumping Dogecoin. But memes and jokes apart, he does seem to show interest in the memecoin’s prospects. Previously reported, Ethereum co-creator Vitalik Buterin predicts that the crypto market will develop an “immune system” against such social media impacts and stated, “Elon is not going to have this influence forever.”