Wednesday, October 20, 2021

Elon Musk, DOGE market maker? Meme currency pumps as SNL skit looms

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DOGE is about to make its popular culture debut. 

As a weeklong pump carries the meme cryptocurrency up 12% on the day by day to $.33 and a staggering 43.8% larger on a 7-day foundation, some are actually speculating the rally could possibly be fueled maybe partly by a social media tease from billionaire Elon Musk that he’ll be collaborating in a Saturday Night time Dwell sketch titled “The Dogefather.” 

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Musk’s fascination with the digital forex dates again to final yr, and he has not too long ago solely appeared to double-down on what may be an elaborate social media prank. Whereas one in every of his firms, electrical carmaker Tesla, added BTC to the steadiness sheet final yr, the entrepreneur nonetheless appears to strategy crypto usually with a contact of befuddlement — admitting that blockchain could possibly be the way forward for human commerce, whereas additionally poking enjoyable at its absurdities. 

“What can be probably the most ironic consequence? That the forex that was invented as a joke actually turns into an actual forex,” he mentioned of Doge in an interview in February.

The market, nonetheless, takes his possibly tongue-in-cheek Tweets very seriously. Whereas the correlation could also be unfastened and sophisticated, a number of research have demonstrated that Musk tweeting concerning the forex tends to drive it larger. 

In January, the Blockchain Analysis Lab printed a paper, “How Elon Musk’s Twitter exercise strikes cryptocurrency market,” that discovered six situations of Musk’s social media exercise propelling DOGE larger.

Likewise, an analysis from Protos discovered that 4 of his tweets had a double-digit percentile influence on DOGE’s value (his tweets about Bitcoin and Ethereum might also transfer these markets, however DOGE’s decrease marketcap makes it simpler to pump).

DOGE is notably inclined to buzz, with social media quantity — especially positive sentiment social media volume during American daytime hours — persistently driving the forex larger.

Whether or not or not a sketch on Saturday Night time Dwell may have the same impact stays to be seen. The present performed a music-heavy explainer on nonfungible tokens in March, although NFT prices may have retreated in a ‘silent crash’ since then.