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Is The Dogefather Losing His Midas Touch?

Is The Dogefather Losing His Midas Touch?

Elon Musk’s latest attempt to pump Dogecoin value did not go as planned, as his cryptic tweets failed to cause much of a stir in the coin’s price. This could be a sign that the once golden boy of the tech/crypto world has cried wolf one too many times and has lost his credibility.

Dogefather Fails To “Release The Doge” On Twitter

The billionaire entrepreneur, known to manipulate the crypto market via his tweets, has been at it again. Instead of dragging Bitcoin over the coals on its energy consumption, this time, the self-proclaimed Dogefather chose to endorse his favorite meme coin, Dogecoin. On Thursday morning, he tweeted out a Godfather meme that he captioned “Release the Doge” from his personal Twitter handle. Even though the price of DOGE rose from $0.24 to $.261, i.e. over 8% following the tweet, a rapid sell-off dropped it back to $0.24. 

Plan To Manipulate The Market Fails Despite Double Attempts

After striking out on his first attempt, the Tesla Twitter handle went in for Round Two with a rather incoherent version of the “Baby Shark” song lyrics - “Baby Doge.” 

The DOGE/USD trading pair rose by 5.22% to $0.26 on the second tweet. However, once again, the price rise proved volatile and short-lived, as it dropped once traders started selling it off. Thus, despite Musk’s attempts, the coin’s price went back to where it was before these tweets. 

Key Moments Of The Musk-Crypto Saga On Twitter

Elon Musk has been known to stir up the crypto market through his tweets. For example, his tweets about Dogecoin earlier this year were sufficient to lead to a market-wide buying frenzy, which in turn fueled the market cap of DOGE to hit an all-time high of almost $100 billion. 

On the other hand, when he aired his concerns about Bitcoin’s high energy usage and dependence on fossil fuels in May, it crashed the crypto market and caused a 17% drop in Bitcoin’s price (from $54,819 to $45,700). Later in June, tweeting a meme that indicated that he has fallen out of love with Bitcoin also caused further fluctuations in the already volatile market. 

Industry Players Not Impressed

Musk has received plenty of flak for his incendiary tweets that can make or break a cryptocurrency. Industry leaders have often called him “irresponsible,” including Binance CEO  Changpeng Zhao, who stated, 

“Tweets that hurt other people’s finances are not funny, and irresponsible.”

Other industry stalwarts who have a more bullish stance on Bitcoin, did not react favorably to his pro-Dogecoin tweets back in February. 

Mike Novogratz, CEO of Galaxy Digital, criticized Musk’s support of Dogecoin, saying,

“Bitcoin has a real purpose, ethereum has a real purpose, lots of the stablecoins have a real purpose. Doge is kind of a meme, kind of a joke.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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