Elon Musk’s Dogecoin price DOGE’s remarkable strength isn’t what sets him apart.
DOGECOIN’S price plummeted alongside other soaring coins on the market yesterday, losing more than 1% of its worth in a couple of hours. What are DOGE’s advantages?
The rapid expansion of Dogecoin this year has added to the cryptocurrency market’s worldwide financial concern. The token’s value skyrocketed in January and has since fluctuated between dazzling highs and dismal lows. Much of its progress has been fueled by one man’s efforts, highlighting both DOGE’s weaknesses and virtues.
DOGE experienced a huge dip yesterday as a result of a tweet from Elon Musk, who was largely responsible for the token’s “to the Moon” trajectory.
He responded to a story in which Jesse Powell, the CEO of trading platform Kraken, claimed that Tesla’s CEO has to conduct more “studying” on the token’s fossil fuel usage.
Mr Powell claimed it was “greener” than detractors claimed, prompting Mr Musk to inquire as to “what data” he based his judgments on.
DOGE dropped soon after, losing 1.9 percent of its value.
At 8.15 a.m., investors could purchase a token for $0.314, and at 1.15 p.m., they could get one for $0.308.
Backers will want to know if the coin has a potential to recover any value after this period of instability.
And, according to one analyst, Mr Musk is one of the driving forces behind its expansion, but there is another, more powerful force at work.
Sam Bankman-Fried, the world’s youngest billionaire and CEO of crypto exchange FTX, explained two causes driving DOGE development on the Jax Jones and Martin Warner Show podcast.
The first is bitcoin investors’ devotion to Mr Musk, he claims.
“Elon is a powerful aspect of this,” Mr Bankman-Fried said. “He is actually the most influential man in the world when it comes to financial assets right now.”
“Everyone assumed he’d go with Dogecoin. And we went with Elon. This is something we agreed to do.
“We signed up for a certain amount of self-aware ridicule, a certain amount of humour, and a certain amount of questioning norms and saying, ‘Well, what makes your product better than Dogecoin?’”
While Elon Musk remains a powerful figure, Mr Bankman-Fried believes what sets it apart from other currencies is its sense of humour.
He claims that interest is fueled by the “funny looking dog,” not the technology underlying it, which is a feature that normally determines interest in other currencies.
“It is objectively the funniest cryptocurrency,” he added. That is what distinguishes it.
“No, it isn’t the technology.” Brinkwire Summary News