By Shelly Melancon (Switzerland)
Meme cryptocurrency, Dogecoin, witnessed a spike in value after Tesla CEO, Elon Musk, asked if the company should accept Doge as payment.
In the Twitter questionnaire made on May 11, Elon Musk asked followers, “Do you want Tesla to accept Doge?” The question triggered millions of responses and within two hours the survey recorded over 1.4 million responses and over 2.7 million responses three hours later. The 24-hour time-based survey at the time of this report has a 77% positive affirmation on the idea and a 23% rejection.
As a result of the hint made by the technocrat, Dogecoin price shot up by 15% about 30 minutes after the tweet went live. The coin surged past its initial trading price of $0.46 to above $0.50 at writing time. It should be recalled that Musk is famous for his fondness of the coin, having at one time described DOGE as his “fav cryptocurrency” in a tweet made in April 2019.
Musk as Dogefather and the Dogecoin Spike
This is not the first time that tweets from the Tesla boss have caused the market to move, the meme-motivated cryptocurrency has seen similar spikes each time Musk attempted to promote it.
In 2021 alone, the cryptocurrency has been on a bull run. Dogecoin traded for a fraction of a penny in January and in February swelled impressively to over $0.05. By April the price of the cryptocurrency increased eight times to $0.40 before declining. After the CEO of the car making company tweeted “The Dogefather SNL May 8.”, the price of the digital asset pushed up to $0.65.
Also read:Lovers of Dogecoin have consistently lobbied Elon Musk to add it as a payment option for Tesla. Musk can also be recalled to have joked about the cryptocurrency being the future of money, even going further to suggest that the coin could well go ahead to become the “currency of Mars.” However, another company owned by the Tesla boss, SpaceX, has also announced their intentions to integrate DOGE in its missions. SpaceX declared, “DOGE-1 Mission to the Moon”, the event that would be launched in 2022 is expected to be funded by Dogecoin.
Speculations About the SNL Event and the Initial DOGE Decline
On Saturday the 8th of May, Elon Musk was hosted on popular “Saturday Night Life” during which a series of questions were thrown to him regarding the cryptocurrency. Earlier, in anticipation of the event, Dogecoin price peaked up to $0.74 as investors expected a positive pronouncement from Musk that would cause a boom in the value of the coin. However, Dogecoin price fell back to $0.42 after the Tesla boss hinted that the digital asset could be “a hustle”.
Nevertheless, investors are likely to take the poll seriously as this isn’t the first attempt of the car manufacturing company to check out cryptocurrencies. Tesla had announced in March that Bitcoin would be accepted as a means of payment a month after making open its $1.5 billion investment in the leading crypto.
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