Elon Musk tweeted a digital magazine cover with a dog apparently supporting a digital currency Dogecoin.
What Happened: Dogecoin, a digital currency launched as a joke, surpassed its all-time high today, growing 420.29% in one day, according to data analytics platform CoinMarketCap. The cryptocurrency is currently trading at $0.03831 USD at the time of publication.
Musk’s followers recognized the tweet as an endorsement of the current Dogecoin rally and expressed their overwhelming support for the Dogecoin future.
Why it matters: This is not the first time Elon Musk has expressed interest in the digital currency.
In December, the Tesla CEO tweeted “One word: Doge,” which sent the cryptocurrency on a 20 percent surge.
Prior to that, his July tweet caused a 14% increase in Dogecoin’s price.
CoinMarketCap Head of Listings, however, in a conversation with Benzinga has warned traders about possible repercussions after a call to buy Dogecoin in a Reddit group caused the recent price surge.
“It’s worth noting that all of this is taking place against a discernible shift in the cultural milieu, where WSB has become typical of a grassroots Reddit movement that seeks to reject the entrenched interests and entrenched power structures of Wall Street.
With his “Gamestonk” tweet, Elon Musk — himself the subject of legal entanglements with the establishment (SEC) and once a self-proclaimed Dogecoin chief — has not only added rocket fuel to ignite Done’s price action on a SpaceX mission to the moon but also a familiar face for “Robinhood traders” to band together.”
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