The “Elon Effect” Continues With Dogecoin Price Surge

Elon Musk holding a Doge, representing Dogecoin. https://twitter.com/elonmusk/status/1357236825589432322

Elon Musk, aka Iron Man, has recently expressed his fan behaviour towards cryptocurrency Dogecoin over Twitter during the last few days. With many tweets made on his account to over 45 million people expressing his interest for Dogecoin, the currency sparked more than 50% on Thursday, February 4th 2021.

The “Elon Effect” which is a movement being made by the billionaire where a series of social media posts drive craze and attention to a company, organization, and now even currency. The price and performance of Dogecoin was determined overnight with the list of tweets made by Elon Musk.

Over a series of tweets that can be found below show the actions made by Elon Musk on his account hyping up the currency. With his tweets made, Dogecoin was trading at 5 cents, which was up 3 cents on Thursday.

Elon Musk tweet hinting Dogecoin will rise. https://twitter.com/elonmusk/status/1357229691824922633
Elon Musk stating Dogecoin is “The people’s crypto” https://twitter.com/elonmusk/status/1357241340313141249
Elon Musk teasing Dogecoin through puns. https://twitter.com/elonmusk/status/1357244295091208193

This isn’t the first time questionable actions have happened on Elon Musks Twitter account. On December 20th, 2020, Elon Musk tweeted “One Word: Doge” which drove the price of Dogecoin 20% and made it a trading topic all over Twitter.

Many can recall the actions made on his Twitter account which resulted in him to pay a $20 million in fines and step down as chairman of Tesla after making certain claims on Twitter about the famous electric car company.

The founder and CEO always finds unique ways to express his opinions and thoughts on the platform about anything. Many publishers even have articles relating to the dumbest tweets made by the billionaire himself.

However, the claims Musk made recently about Dogecoin sparked an interesting conversation amongst investors as the attention towards the cryptocurrency is increasing. Celebrity endorsed companies and currencies seem to be on the rise as Elon Musk endorsed Clubhouse (social media platform) as well over the last week, driving the company shares of OTCMKTS: CMGR up 116% on Monday, February 1st 2021.

Elon Musk claims he should have invested in Dogecoin eight years ago and hopes he isn’t late to the game. However he did make claims about Bitcoin, stating he is “Late to the party. But I am a supporter of Bitcoin”.

Mark Cuban joins the trend claiming he would “buy Dogecoin over a lottery ticket”:

Not only Elon Musk, but Dallas Mavericks owner Mark Cuban also put out a tweet on Wednesday, February 3rd 2021 stating he would choose Dogecoin over a lottery ticket.

https://twitter.com/mcuban/status/1357124261484392448

Mark Cuban stated in a Reddit Ask Me Anything (AMA) series that he owns a wallet in cryptocurrency with a diverse portfolio which intrigued many users.

The influences being made over social media seem to be a trending approach to inflate certain assets as these activities follow after the Reddit r/wallstreetbets feud which is still a hot topic.

The gamble with cryptocurrency is continuing and causing speculation as prices with Bitcoin and Dogecoin have been fluctuating rapidly over the last few months.

Now, with social media influence as well, it seems like cryptocurrency is the next target for these billionaires as they share their interest over social media. Thus, causing attention and driving people towards making decisions on cryptocurrency investing.

What do you think? Is Elon Musk making fair claims? Or is he just bored?

Written by: Karthik Ganapathiraju, Wil Peters, and Aneeshan Balakaran

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