Dogecoin recovers losses on yet another Elon Musk tweet
|Toronto Star 20 May 2021 at 16:24|
Dogecoin and other cryptocurrencies on the mend following Wednesday’s crash as Tesla CEO Elon Musk rips another cryptic tweet about the meme cryptocurrency.
Dogecoin has turned into Elon Musk’s unofficial virtual pet token, only it doesn’t understand the Tesla (TSLA) CEO and self-proclaimed Technoking’s commands.
Dogecoin, the volatile meme cryptocurrency that continues to defy all valuation odds, was recovering from steep losses Thursday after yet another cryptic tweet from Musk, who has been toying with the dog-themed digital token for more than a month.
Dogecoin was definitely on the mend on Thursday, gaining more than 11 per cent alongside Bitcoin, Ethereum, Cardano, Stellar and other tradable digital tokens.
“How much is that Doge in the window?,” Musk tweeted Thursday morning alongside a photo of Tesla’s soon-to-be-produced Cybertruck with the word “Cyberviking” emblazoned in neon underneath.
Within 23 minutes, the tweet had nearly 60,000 likes, had garnered more than 14,500 retweets and generated nearly 17,000 comments.
The tweet follows broad-based carnage in the cryptocurrency market, which on Wednesday saw Bitcoin drop by as much as 50 per cent from its recent all-time high. Dogecoin, a so-called “meme” digital currency that is not backed by any platform like blockchain, also plunged.
The price of Bitcoin rebounded late Wednesday after Musk indicated his electric vehicle company could hold its billion-dollar position in Bitcoin. At last check, Bitcoin was up 14 per cent at $41,934, according to CoinDesk. Etherum was down 15.41 per cent at $2,911.21 while Dogecoin was up 11.42 per cent at 41.5 cents.
Musk has turned into the proverbial Pied Piper of Bitcoin and the more general Wizard of Crypto Oz, moving cryptocurrency markets, rightly or wrongly, with his tweets and comments.
Dogecoin surged last week and then quickly receded after Musk asked his 53.9 million Twitter followers whether Tesla should accept the cryptocurrency originally meant as a joke as a form of payment. The survey had more than 3.9 million respondents, with almost 80 per cent voting yes.
That followed a Dogecoin slump after Musk jokingly called the cryptocurrency a “hustle” during one of his skits on “Saturday Night Live.” It recovered its losses and then some on Monday amid renewed optimism that it could be used as a method of payment.
Musk, whose criticism of bitcoin’s energy use coupled with a suggestion Tesla could sell its $1.5 billion in holdings acquired earlier this year, helped tilt the digital currency into its biggest tailspin of the year on Wednesday.
However, the carnage quickly receded following yet another Musk tweet later on Wednesday that included emojis of so-called diamond hands, images that are typically interpreted as indications of a “hold” strategy for key assets.