Dogecoin: Tesla boss Elon Musk has alleged development of the cryptocurrency "tacitly funded"

• Dogecoin far from previous highs
• Despite the slump: Musk “secretly” financed the development of Dogecoin
• Will the Dogecoin benefit from Musk’s plans for an “app for everything”?

After its all-time high in November 2021, the oldest and largest cryptocurrency by market capitalization, Bitcoin, has lost significant value over the past year. At times, a bitcoin was only worth around 15,500 US dollars. In general, the past year was marked by scandals and price crashes, and so the whole crypto market went down. The Dogecoin, originally launched as a fun currency, also lost significantly in value. After costing about $0.26 at the time of the Bitcoin high, it was temporarily worth only about $0.09 a year later. While some cryptocurrencies, such as Bitcoin, were able to recover significantly this year, Dogecoin has fallen by a further 6.65 percent since the start of the year. It is currently trading at $0.0639 (as of 9/5/2023).

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Musk “secretly” funded development of Dogecoin

However, one who has continued to support the Dogecoin through all the ups and downs is Tesla CEO Elon Musk. As Forbes reports, Musk is said to have “secretly” financed the development of Dogecoin – even though the fun currency – like many other cryptocurrencies – has collapsed.

Before Musk bought Twitter last year, he considered creating “a new blockchain-based social media platform” that “could have a payment system using Dogecoin, the semi-reputable cryptocurrency he had quietly funded to develop.” , according to a clip from Musk biographer Walter Isaacson’s new book, published on the Wall Street Journal website. The size of Musk’s cash injection isn’t clear, but Musk has previously said that he wants to “upgrade” Dogecoin to “beat Bitcoin by a mile” and “become the currency of the earth.”

“app for everything”

After Musk renamed the short message service Twitter X a few weeks ago, the Tesla CEO should now be serious about his “app for everything”, which is intended to bring together a large number of online services. As Twitter CEO Linda Yaccarino wrote: “X is the future state of unlimited interactivity – with a focus on audio, video, messaging, payments/banking – creating a global marketplace for ideas, goods, services and opportunities. Powered by AI, X will become us connecting everyone in ways we’re only just beginning to imagine.”

X is the future state of unlimited interactivity – centered in audio, video, messaging, payments/banking – creating a global marketplace for ideas, goods, services, and opportunities. Powered by AI, X will connect us all in ways we’re just beginning to imagine.

– Linda Yaccarino (@lindayaX) July 23, 2023

Effects on the Dogecoin

Experts reckon that this development, like many of Musk’s actions, will also have an impact on the Dogecoin. At the beginning of July, the multi-billionaire surprised everyone by replacing the Twitter logo with Dogecoin’s. The course of the memecoin then jumped significantly. Even after Elon Musk updated his profile on the short message service and added the Dogecoin symbol behind the “X” in the description of his location, the coin was able to increase in value significantly: it rose from just over 0.07 US dollars to more than 0 at times $.08.

Should Musk actually integrate a payment system into the X app, as expected, that allows payments with Dogecoin, this could give the cryptocurrency with the dog logo a further boost. “Elon clearly has an affinity for DOGE, almost as a joke, but I wouldn’t be surprised if he actually enabled payments through DOGE,” CoinDesk quoted Brian D. Evans, founder and CEO of BDE Ventures. “I suspect he will integrate other crypto assets like bitcoin, ethereum and stablecoins like USDC, but DOGE is such a part of Elon’s online presence that if he has a crypto payment system on would introduce Twitter,” Evans said.

Editorial office finanzen.net