Dogecoin, one of the most popular copycat coins in the cryptocurrency market, is in tears today. The cryptocurrency was up 13% at the time of publication. The move comes as Tesla CEO Elon Musk reiterated his support for cryptocurrencies at the Qatar Economic Forum in Doha on Tuesday.
According to Bloomberg, Musk told the Qatar Economic Forum that he bought it and backed it because “less wealthy” people asked him to do so.
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Dogecoin is beloved by Musk
Musk said in an interview with Bloomberg News editor-in-chief John Micklethwaite at the forum:
“I just know a lot of people who are not so rich who encouraged me to buy and support Dogecoin. I am responding to those people.”
The coin started out as a joke in 2013, but quickly grew into a major cryptocurrency thanks to the community and creative memes.
Unlike other cryptocurrencies, Dogecoin is prone to depreciation because there is no limit to the number of DOGE units that can be created.
In 2017, the price of Dogecoin was $0.0003. By June 1, 2022, its price has risen by around 40,000% to $0.10. According to Coingecko, DOGE is currently trading at $0.063348, up more than 14% as of this writing.
Musk also said that his employees had asked him to promote the token. “They urged me to support Dogecoin, which I am,” the billionaire explained.
In addition to Dogecoin, the SpaceX founder has also expressed support for other cryptocurrencies. Musk said in October that he owns bitcoin, ether and DOGE.
DOGE total market cap at $8.5 billion on the weekend chart | Source: TradingView.com
Musk Social Media Comments on Mobile DOGE
Dogecoin often changes in response to Musk’s comments about it. It rose 8.5 percent in 24 hours on Monday from near all-time lows after the CEO said he would continue to promote and buy the meme token in the face of a massive cryptocurrency sell-off.
The dog-themed currency tumbled last May after Musk called it a “hustle” on Saturday Night Live.
Musk recently said that Dogecoin could potentially compete with Bitcoin and be used for payments. Tesla said in January that it would start accepting payments in Dogecoin for certain products, meaning more could be added “in the future.”
Last week, Musk was sued for $258 billion by a Dogecoin investor who claimed the tycoon was involved in “a pyramid scheme by promoting the Dogecoin cryptocurrency.”
Meanwhile, Musk hinted last week that cryptocurrency payments would be integrated into the platform if his attempt to acquire Twitter was successful.
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Featured image from NDTV Gadgets 360, chart from TradingView.com