Dogecoin, one of the crypto market’s most popular parody coins, is on a tear today. At the time of publication, the cryptocurrency was up 13%. Elon Musk, CEO of Tesla, reiterated his support for cryptocurrency on Tuesday at the Qatar Economic Forum in Doha.
According to Bloomberg News, Musk claimed at the Qatar Economic Forum that he buys and backs it because people “who are not that wealthy” have asked him to.
Musk Shows Support for Dogecoin
During the forum, Musk said in an interview with Bloomberg News Editor-in-Chief John Micklethwait:
“I just know a lot of people who are not that wealthy who have encouraged me to buy and support Dogecoin. I’m responding to those people.”
The coin began as a joke in 2013, but thanks to a dedicated community and innovative memes, it swiftly blossomed into a major cryptocurrency.
Dogecoin is subject to depreciation because, unlike other cryptos, there is no limit on the number of DOGE units that can be created. In 2017, the price of Dogecoin was R0,0048. By June 1, 2022, its value had increased by approximately 40,000% to R1,59. Doge is presently trading at R1,01, up more than 14% as of this writing.
Musk also mentioned that his team had asked him to promote the coin. “They urged me to endorse Dogecoin, and I am,” the billionaire said.
Aside from Dogecoin, the SpaceX founder has expressed interest in other cryptocurrencies as well. In October, Musk stated that he owned Bitcoin, Ether, and DOGE.
Musk Social Media Comments Move DOGE
Dogecoin routinely fluctuates in response to Musk’s comments. On Monday, it surged 8.5 % in a 24-hour period from near-record lows after the CEO declared that, in the face of a huge cryptocurrency sell-off, he will continue to promote and acquire the meme token.
The dog-themed currency collapsed in May of last year after Musk referred to it on Saturday Night Live as a “hustle.” Musk recently claimed that Dogecoin may compete with Bitcoin for payment purposes. Tesla announced in January that it would start accepting Dogecoin payments for certain products, hinting that more could be added: “down the line.”
Musk was sued for R4 trillion by a Dogecoin investor last week, who claimed Musk was participating in a “pyramid scheme through pushing Dogecoin cryptocurrency.”
Meanwhile, Musk said last week that if his bid to acquire Twitter succeeds, cryptocurrency payments will be integrated into the site.