This cryptomony exceeded 5 billion euros in capitalisation on 4 February following simple tweets from the American billionaire. A historic record even though its code has not been updated since 2019.
He had assured to withdraw from Twitter for some time. But less than 48 hours later, Elon Musk is already back on the social network. Through a series of tweets, each one more cryptic than the last, and invoking his love for memes, these humorous and particularly viral images, the billionaire has come to support a cryptomony little known to the general public: the dogecoin.
In the aftermath, the price of this digital currency rose by more than 60%, before dropping slightly. Nevertheless, the dogecoin remains close to its historical high, without any other reason than Elon Musk’s tweets to justify this.
Why support such a cryptomony? No one can really explain the intention of Elon Musk, who recently got into the habit of upsetting the price of cryptomoney as well as shares (including those of the video game company GameStop or the e-commerce specialist Etsy) by simple tweets rather lapidary.
The dogecoin, symbolized by a very popular dog meme when it was created in 2013, does not stand out because of its technical characteristics. This motto was launched as a pale copy of Bitcoin, to better mock the craze for cryptomoney. « It’s a token that claims to be useless, » says Claire Balva of Blockchain Partner. « Unlike Bitcoin, it can be used for micropayments because it has lower commission charges, » she adds. « But this is its rare distinguishing feature.
Cryptonics has not been updated since 2019, and therefore has not seen any technological innovations since then. But that’s not the point: all it takes is a friendly mascot and a certain amount of humour for the motto to appeal to a very broad community.
In spite of its technological promise that is empty on paper, the Dogecoin alone brings together more than 849,000 aficionados on a dedicated forum. That is more than the tab dedicated to ether, the second most important cryptomony in capitalization after Bitcoin.
Its capitalization is nevertheless far from being anecdotal. It will have increased dramatically to reach two billion dollars (1.7 billion euros) in early 2014, before experiencing a dry spell until 2017. Nothing to report since then, apart from a long desert crossing. With this renewed interest, the dogecoin has now passed the 5 billion euro mark in capitalization and probably delighted many of its followers.