The value of Dogecoin, the eighth-largest crypto by market capitalization and Elon Musk’s favorite digital asset, has continued to decline since its logo was removed from Twitter. DOGE surged on April 3 after Elon Musk’s social media company replaced its blue bird logo with Dogecoin’s mascot.
Dogecoin goes up and goes down at Musk’s will
Musk, the CEO of Tesla and SpaceX, had been a vocal advocate for Dogecoin on his Twitter account, often posting memes and tweets that fueled the crypto’s meteoric rise. His frequent endorsements of Dogecoin had sparked a frenzy among investors, leading to significant price surges and a cult-like following among crypto enthusiasts who referred to themselves as the “Doge Army.”
DOGE reached a high of 10.5 cents on April 3 after Elon Musk’s social-media company inexplicably switched to using Dogecoin’s Shiba Inu as its logo instead of its iconic blue bird. Its worth then increased by more than 20%.
However, the bird logo has returned, and the dog has vanished. Elon Musk, who owns Twitter and frequently mentions DOGE, has yet to explain why the microblogging website’s logo changed in the first place.
According to CoinGecko, the original “meme coin” was down 9% at the time of writing, trading for $0.086. Its value plummeted by as much as 6% in an hour Thursday afternoon Eastern Time, just after the Dogecoin logo vanished from Twitter’s platform.
Elon Musk in Court over crypto promotion
With his social media activity and market moves, Elon Musk continues to make waves in the crypto industry. As one of the most influential figures in the tech and business world, Musk’s tweets and actions have the power to impact the crypto market, often leading to significant price fluctuations and investor frenzy.
Musk’s tweets have been known to cause both spikes and crashes in the prices of various cryptocurrencies, including Bitcoin, Dogecoin, and others. In recent months, his tweets about cryptocurrencies have become highly anticipated events in the crypto community, with traders and investors eagerly awaiting his opinions and announcements.
The Dogecoin emblem on Twitter caused quite a stir, with users wondering whether it was an April Fool’s Day prank or if hackers had gained access to the platform.
The rest of the Doge community grew hopeful about an upcoming payment integration announcement. According to reports, Elon Musk’s actions may result in the securities regulator ramping up the action, resulting in short-term value gains.
Since 2019, the billionaire has brought up DOGE in conversation, aware of the “Musk Effect” on its price. The beloved DogeFather had previously confirmed that, in addition to Bitcoin and Ethereum, he holds no other memecoins besides DOGE.
The new CEO of Twitter often refers to Doge as the “currency of the people” and his “favorite cryptocurrency.” Doge had also risen following the announcement that Musk would host “Saturday Night Live” in 2021.
The SEC has predominantly regulated the market via enforcement actions. Tokens that the agency deems “unregistered securities” are subject to stricter regulations and fines in the billions of dollars.
In the meantime, Elon Musk is being sued for $258 billion on the grounds that he ran a pyramid scheme to benefit Dogecoin. According to Reuters, Musk asked the Manhattan court to dismiss the lawsuit at the beginning of the month. In addition to defending Musk’s Tweets, his legal counsel argued that Dogecoin is not a security.
Gary Gensler, chairman of the SEC, has frequently stated that the sector can be regulated using existing regulations. This is the case despite cryptocurrency proponents’ claims that the market requires a new regulatory framework and that digital assets cannot be treated as stocks.
As the crypto market continues to gain mainstream attention and adoption, Musk’s influence is likely to remain a hot topic of discussion. His ability to move the market with a single tweet or action has made him a polarizing figure in the crypto community and beyond, with some viewing him as a champion of decentralized finance and innovation. In contrast, others express concerns about the potential risks and volatility associated with his influence.
