During the Trump Rally Tour, Elon Musk’s Dogecoin Pump Boosts Other Meme Coins
Elon Musk and Politics
Elon Musk established himself as a technological entrepreneur who will not back down from risking big and going to a new market. Though he is successfully leading Tesla and SpaceX companies, he stands out for his sometimes lewd opinions about politics and technology. This maverick image has made him a hero to some unidentified groups of people on the internet.
Since Musk has maintained friendly and business collaborations with a now former president Donald Trump, who attended campaign rallies with the Tesla tycoon, an interesting byproduct has dawned — an even greater demand in what is called ‘meme coins’, such as Dogecoins. Originally starting in about 2013, these altcoins were initially created as jokes, but became more and more popular as speculative crypto tokens relevant to online culture and real-world events.
The Dogefather
Although, Musk has public downplayed the conventional equity investments, a shared endorsement of memecoins such as Dogecoin (DOGE) on social media and television interviews is probably interpreted by the investing community of these coins as a positive signal. Dogecoin and similar commodities trade at high levels each time Musk gives a positive sentiment in the market. This offer him a rather unchecked control in a class of tokens that is today worth more than $50 billion combined .
What should the leaders of institutions make of this phenomenon? On one hand, Musk’s experiment with meme coins may seem as a distraction — he undoubtedly remains busy with his main industries. Furthermore, they are ultra-fragile and therefore not well suited for mass man trading, ‘pumping and dumping’.
However the demand for such assets gives indication in understanding the increasing raw influence of social media to steer capital. Management in any industry — financial, political, or technological — now need to understand small Internet cultures. With them, market trends can change within quite a short span of time.
On Trump’s Campaign Trail
As Elon Musk travels the United States with Donald Trump’s presidential campaign the price action of many meme coins appears to follow his path.
For example, a Solana micro-cap token was launched through Pump.fun with a price rise of 10,000%. Other tokens inspired by Musk have also posted double digit gains.
Over the last month, Musk has appeared on stage with Trump several times, leading to questions about whether he could be recruited if Trump triumphed again in a second presidential term to lead a new ‘Department of Governmental Efficiency’ (D.O.G.E.). Recent crypto activities are seemed to be fueled by closer association between Musk and Trump’s campaign.
Dogecoin has had a massive pump recently. DOGE has rallied close to 20% over the past seven days and is up over 30% in the past month, reaching a five-month high with the token not far from $0.17.
But not all cryptocurrencies have been hogging the spotlight by the Elon Musk effect. The best performing crypto asset class over the past 24 hours is Currently Musk inspired tokens, which are ranked fourth on CoinGecko.
This indicated that, especially given Musk’s continued appearances on the campaign trail with Donald Trump, as far as the meme coin market is concerned, his high-profile involvement has a sizable impact. One sign of that is investors chasing Musk like he’s a professional basketball player and making speculative bets on tokens that are somehow tied to the tech billionaire.
Conclusion
The bottom line is that it can, and will, forever be the case that Musk sets the tone in popular culture or just mimics it when he gets a chance. It appears all his various companies and projects always plan their investments to coincide with the new exciting trends like electric vehicles, private space travel, and AI. Finally, the complementarity between Musk and these dominant cultural obsessions does not seem to matter — the outcomes serve his innovative aspirations. Ignoring the authority of these mainstream movements, Musk resorts to risk depreciation of efforts towards development. As for the future, it will be interesting to learn whether he will keep reinventing himself and waiting for the next waves or slowly losing his golden touch at stimulating worldwide interest in his projects.
