express– SpaceX and Tesla founder Elon Musk announced a self-imposed Twitter ban only two days ago, writing: “Off Twitter for a while.” However, Thursday saw Mr Musk return with a series of posts apparently praising cryptocurrency dogecoin. From its relatively obscure origin, dogecoin is now considered by some to be a hot asset by those looking to make fast buck.
The minor crypto’s rise in value has historically been associated with Reddit users’ campaigns.
In a trio of tweets posted yesterday, Elon Musk wrote: “Dogecoin is the people’s crypto.”
He added: “No need to be a gigachad to own.” And said: “No highs, no lows, only Doge.”
Elon Musk then posted a crudely-photoshopped Disney Lion King meme, featuring himself holding Shiba Inu – the dog at the centre of the doge meme, also the crypto’s logo.
The cryptocurrency started as a joke in 2013, but following Mr Musk’s tweets proceeded to soar by approximately 64 percent in the next 24 hours – peaking at $0.05394 (39p).
Dogecoin has over the last week come to particular prominence about Reddit users turned their attention to cryptocurrency after driving incredible in the shares of American video games retailer GameStop, which has since come crashing down.
Several other of the main cryptocurrencies also saw gains on Thursday, with bitcoin (BTC) growing almost 25 percent and Ethereum (ETH) up more 30 percent.
However, dogecoin has since slumped in value, with its worth plummeting precipitously only hours after its peak.
CoinDesk data shows one dogecoin is currently valued at $0.045416 (33p), as of 11am on Friday, February 5.
Yesterday was far from the first time Elon Musk has tweeted his apparent support for dogecoin.
The SpaceX head, who currently boasts 43 million followers on Twitter, only recently changed his bio to “CEO of Dogecoin” and then later in the same day to “Former CEO of Dogecoin”.
Mati Greenspan, crypto expert and quantumeconomics.io CEO, believes this dogecoin mini-bubble is evidence “the effects of his [Elon Musk] attention seem to be wearing off.”
He wrote: “Doge has picked up a lot of momentum since his first social engagements, and the digital asset gained more than 3,000 percent since.
“Yet [yesterday], after a lot of concentrated efforts, we saw only a modest pop of around 60 percent before it began retracing the gains.”
During a discussion on social app Clubhouse earlier this week, Elon Musk outlined the reason for his fascination with dogecoin.
The world’s richest man said: “Occasionally I make jokes about dogecoin but they are just meant to be jokes. [But] fate loves irony.
“The most entertaining outcome is often the most likely and arguably the most entertaining
“And most ironic outcome would be that Dogecoin becomes the currency of Earth in the future.”
Binance and Kraken are the largest exchanges currently offering people to trade in dogecoin.
However, there are significantly fewer cryptocurrency brokers offering altcoins such as DOGE compared with more popular coins, like bitcoin or Ethereum.
Leading US-based free stockbroker Robinhood does support dogecoin, which has played a role in driving up its price.
The broker has struggled with surging demand and last week temporarily disabled instant deposits for cryptocurrency purchases.