Elon Musk Advises Community Against Going All-In on Dogecoin with their Savings

By Tsunami 05/24/23 9:35 AM

At the Wall Street Journal conference in London, billionaire Tesla CEO, Elon Musk, advised cryptocurrency investors against risking their savings on Dogecoin. Following his remarks, the price of the memecoin experienced a slight decline.

During the online panel discussion, Musk made it clear that he was not encouraging anyone to “invest in cryptocurrency or pour money into Dogecoin.” However, he did express his fondness for the coin, citing its humorous nature and the fact that it features an iconic image of a Shiba Inu dog.

Shortly after the event, the price of Dogecoin dropped nearly 3%, from $0.07289 USD to $0.07086 USD. Currently, the coin is trading at $0.071427 USD, with no significant deviation from previous days.

Musk’s advice appears to contradict his previous statements about Dogecoin. Created in 2013, Dogecoin is considered the first memecoin in the cryptocurrency market. Despite its origins as a joke, the coin has now achieved a market capitalization of over $10 billion, with a large and devoted community of supporters.

Elon Musk has played a significant role in the growth of Dogecoin. His Twitter posts have often propelled the coin’s value to soar. Merely mentioning Dogecoin in relation to Musk quickly evokes thoughts of the billionaire entrepreneur. For instance, he once declared, “Dogecoin is a better payment method than Bitcoin,” and even implemented Dogecoin as a payment option for his own company, Tesla.

In the draft program of Saturday Night Live, Musk referred to himself as the “Dogefather” and mentioned the coin multiple times during the broadcast. In January 2022, Musk announced that he would eat a McDonald’s Happy Meal on live television if they accepted Dogecoin as a form of payment. This immediately caused Dogecoin’s market capitalization to surge, and its price increased by 9% despite a previous month-long decline of 25%.

In April, Musk stirred up the community by changing his Twitter profile picture to the image of a Shiba Inu dog, the symbol of Dogecoin. Within a few hours, the memecoin surged by 37% to $0.09 USD. Musk’s public endorsements have left many investors outraged. In a class-action lawsuit filed in June 2022, plaintiffs accused him of orchestrating a plan to manipulate the coin’s price for personal gain.

Musk’s recent warning to investors at the Wall Street Journal conference in London has had an immediate impact on Dogecoin’s value. Whether his cautionary advice will dampen the enthusiasm surrounding the memecoin or if it’s just a temporary setback remains to be seen. As the cryptocurrency market continues to evolve, investors will undoubtedly keep a close eye on Musk’s future involvement with Dogecoin and its influence on its value.

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