Will Dogecoin (DOGE) reach $1? How Elon Musk’s tweets boost cryptos prices?
In 2023, Dogecoin (DOGE) made several attempts to break above the $0.10 level, constantly trading in a sideways range due to its inability to gather price momentum at higher levels. Meanwhile, experts say that other coins will surpass Dogecoin (DOGE), but even veteran traders are left wondering, “How does the coin still survive?”
Elon Musk’s Mind Games
As an engineer, inventor, and innovator in the development of disruptive technologies, Elon Musk pays attention to cryptocurrencies.
He actively advocates for proper regulation of specific coins. With his large social media following, Musk’s cryptocurrency-related posts instantly impact market situations.
Take, for example, his statements. Almost after every tweet, the price of a digital coin can skyrocket or plummet by 8–15%.
For instance, in 2021, the entrepreneur posted that Tesla would no longer accept tokens as payment. According to him, mining digital currency consumes too much electricity, causing harm to the environment. Bitcoin immediately dropped by 10% following this announcement.
He stated that a currency consuming more energy than some countries have no right to exist. In one of his posts, he shared a graph of the energy consumption index compiled by the Cambridge Institute. Musk commented, “The energy usage trend is insane.”
Having Bitcoin in Tesla’s treasury doesn’t make it more eco-friendly. Musk’s rejection of Bitcoin was a calculated move, as few would choose to donate digital currency in favor of Tesla.
Elon Musk and Dogecoin
After his comments about Bitcoin, Elon Musk turned his attention to the main competitor of the currency — Dogecoin.
In one of his posts about the digital coin, he shared a meme featuring a famous scene from the movie “The Lion King” where the monkey holds Simba above its head. However, in this version, the Dogecoin emblem was photoshopped in place of Simba, and Musk’s face replaced the shaman monkey.
The entrepreneur didn’t stop at just one post, which led to another surge in the currency’s value. Musk tweeted that he had given Dogecoin to his son, whom he deemed ready to be an investor. Following this, the coin became known as “Elon Musk’s cryptocurrency.”
However, after some time, the billionaire published a new post stating his support for Dogecoin holders who wanted to sell their holdings. This caused the currency to drop by 14%.
Following these contradictory statements, Musk was accused of artificially manipulating the coin’s value. Musk’s remarks caused a lot of trouble for investors. When he questioned whether Tesla should accept payment in Dogecoin, the currency lost 30% of its value. However, his followers strongly supported the idea, which helped recover some of the lost positions.
Furthermore, Elon Musk claimed that prices of Bitcoin and Ethereum were overvalued. These words also caused changes in the market. However, Musk shows no signs of stopping. During a popular TV show, Saturday Night Live, the billionaire declared that Dogecoin would take over the world in the near future.
Interestingly, his statement caused a 48% drop in the digital coin’s stock. Apparently, nobody believed in the seriousness of Musk’s intentions.
Is it worth investing in the digital coin?
To decide whether to invest in Dogecoin, one must believe in Elon Musk’s ability to create demand. Making a profit through speculation will require a new push from the entrepreneur.
Recently, Dogecoin demonstrated a sharp rise again, indicating a renewed interest from Elon Musk in the currency. The value of the digital coin now largely depends on the Tesla founder. With a single word, he can either enrich or cause the loss of savings for many investors.
Whether to attempt to profit from Dogecoin or consider it a risky venture is a decision each person must make for themselves.
CEO’s of the most famous crypto exchanges and their assets
In a recent Ask Me Anything (AMA) session organized on Twitter, Binance CEO Changpeng Zhao (CZ) stated that Dogecoin, the largest meme coin, has “super long-term staying power,” adding that the token’s endorsement by Musk could have played a significant role. CZ also mentioned that the token carries high risk, and he did not expect it to survive for such a long time.
Changpeng “CZ” Zhao, co-founder and CEO of Binance, expressed his surprise at seeing Dogecoin survive for such a long time, considering that most meme coins have a short lifespan. However, CZ stated during the AMA session on Twitter that Elon Musk’s support for DOGE could have played a significant role.
“The meme coin that really surprised me was Dogecoin. It had super long-term staying power. I thought it would disappear long ago. But Elon Musk grabbed onto it and may have extended its life.”
One of the primary uses of BNB is to pay for trading fees on the Binance platform, with Binance offering rebates to incentivize its usage. Beyond this, the coin also offers lightning-fast transactions, further enhancing its utility within the Binance ecosystem.
The BNB Chain uses a unique combination of Proof of Stake (PoS) and Proof of Authority (PoA) consensus mechanisms to validate network transactions. Furthermore, BNB employs an Auto-Burn system to reduce its total supply to 100 million BNB, thereby adding a deflationary aspect to the coin. The Auto-Burn mechanism adjusts the amount of BNB to be burned based on its price and the number of blocks generated on the Binance Smart Chain (BSC) during a quarter, providing greater transparency and predictability to the BNB community.
Given these factors, BNB could be considered a good investment for several reasons. First, the coin’s close association with Binance — a dominant player in the cryptocurrency exchange market — can potentially drive its value higher as the platform continues to grow. Second, BNB’s utility within the Binance ecosystem, particularly its use for trading fees and fast transactions, enhances its demand. Third, BNB’s unique consensus mechanisms and Auto-Burn system, which reduces the token’s total supply, could contribute to its long-term price appreciation.
The live BNB price today is $307.40 USD with a 24-hour trading volume of $315,130,834 USD.
Recognising this, the largest crypto exchange in Europe, the Ukrainian originated WhiteBIT has launched its own token WBT. According to him, the creation of WBT’s own token is another global step within the platform’s overall scaling strategy, the main goal being additional comfort and convenience for users. The first token sale was on 14 August.
“The benefits of the WBT token offer the user a completely unique opportunity. The expected referral rate, that is to say — the benefit — on a WBT token will end up being between 40% and 50%. Also, reduced trading commissions, daily Anti-Money Laundering (AML) checks and free ERC20/ETH withdrawals,” explains Volodymyr Nosov.
In order to maintain and promote the ‘value’ of WhiteBIT tokens, the exchange will continuously redeem tokens and burn them until the number of tokens in the market is less than 50% of their initial number.
The live WhiteBIT Token price today is $4.66 USD with a 24-hour trading volume of $522,0546.25 USD
Conclusion
Investing in Dogecoin becomes a speculative decision that relies heavily on Elon Musk’s ability to generate demand for the coin. The value of Dogecoin is now closely tied to Musk’s actions and statements, making it a risky venture for investors.
Binance’s and WhiteBIT native tokens, BNB and WBT, offer utility within the exchanges ecosystem and have much more potential than DOGE. With its association with prominent exchanges and unique features, BNB and WBTcould be considered a good investment option.
In summary, investing in specific coins involves considering their potential, associated risks, and the actions of influential individuals in the industry.
However, we must acknowledge that the frenzy surrounding meme coins provides evidence that Elon Musk influences the entire market and market development trends. But what will be the next hype? Maybe CAT-COIN or some kind of Green-COIN? That remains a mystery. As intelligent individuals, we will certainly try to find opportunities in any situation, by monitoring the market and, of course, following Elon Musk on twitter.
