The tech world is abuzz with rumors that the planet’s wealthiest man, Elon Musk, has been clandestinely funding the development of Dogecoin (DOGE), adding another fascinating twist to his already headline-grabbing relationship with the meme-based crypto. The Wall Street Journal brought this potentially game-changing intel to light on August 31.
A Rollercoaster Connection
Dogecoin, which started in 2013 as a lighthearted internet joke, catapulted into the public eye when Musk openly endorsed it in 2021. He even revealed that Tesla would accept DOGE for specific merchandise. Later that year, multiple sources reported that Musk would be an advisor to the Dogecoin Foundation. However, in a curveball move, Musk distanced himself from the foundation in October 2021, claiming no association.
Musk’s Twitter and Dogecoin Connection
The saga took another head-spinning turn in April 2023, when Musk acquired Twitter and promptly changed its iconic blue bird logo to a Shiba Inu, the face of Dogecoin. This symbolic change strongly hinted at Musk’s ambitions to weave Dogecoin into Twitter’s future.
Navigating Crypto’s Rough Waters
This latest revelation comes at a tumultuous time for the crypto market. Due to the recent slowdown in Bitcoin’s price rally, Dogecoin is down by about 90% from its all-time high of $0.73 in May 2021. As the crypto world anticipates a potentially turbulent September, speculations are rife about how Musk’s secret funding could impact the entire crypto ecosystem.
Musk’s Grand Vision for Dogecoin
While the full scale of Musk’s financial backing of Dogecoin remains a mystery, his ambitious vision for the meme crypto is crystal clear. Musk has vocalized his aspiration for Dogecoin to eclipse Bitcoin and become the “currency of Earth.”
DOGE’s Financial Health
Even with the recent market volatility, Dogecoin’s network is valued at an estimated $8.9 billion, according to CoinMarketCap data. It appears to have retained a substantial portion of its gains, making it a relevant player in the crypto market.
What Could the Future Hold?
If Musk officially confirms his financial support for Dogecoin, it could reignite DOGE’s value and redefine its use cases. DOGE’s trading value is $0.0626 at the time of writing, having suffered a 1.66% dip in the last week.