*This post may contain affiliate links that help keep the lights on, find more info in our full disclaimer.
Twitter Logo Switch Fuels Dogecoin Drama
Dogecoin Feels the Love: Price Jumps After Musk’s Tweet
In a historic move, the familiar blue Twitter bird that has been the iconic logo of the popular social media platform for nearly a decade was recently switched out with an image of a Shiba Inu, a canine breed known mainly for its off-the-wall internet memes. This symbolic exchange was seen as a bigger nod to the joke cryptocurrency dogecoin, and the switch in logos by Twitter CEO Elon Musk proved to be a lasting sign of support from the tech mogul.
Since the move, the price of dogecoin saw a dramatic uptick, with an increase of about 20% over the last 24 hours. The sudden market move was very likely driven by supportive sentiment after Musk’s Twitter announcement. Elon Musk’s involvement in digital currencies like dogecoin has been of late, especially in light of his current legal complications. But his subtle endorsement of dogecoin through the small logo switch is a testament to how the crypto sphere has grown in mainstream recognition and acceptance.
This isn’t the first time that Elon Musk has voiced his support for the coin either. As recently as April 2021, Musk called dogecoin ‘the people’s crypto’ in response to a tweet. Nonetheless, the famous tech entrepreneur has stated explicitly that he won’t actively promote investments in any digital currency. Whether the switch in logos was an effort to show solidarity or an intentional market tactic, it’s tough to say for sure what Musk’s ultimate intended outcome is.
In any case, the dogecoin surge in the wake of the switch has reaffirmed the public influence that those prominent within the tech industry have on the digital markets. Only time will tell if this effect can be sustained, or if the spike in dogecoin value will taper off over time.
History of Dogecoin
Doge Coin was founded in December 2013 as a peer-to-peer digital currency project by Billy Markus, an IBM software engineer, and Jackson Palmer, an Adobe software engineer. They wanted to create a cryptocurrency that would reach a broader demographic than Bitcoin and would distance itself from the controversial history of other coins. When the currency was launched, over a million people had visited Dogecoin.com within 30 days.
Dogecoin’s protocol was designed by Markus and was based on Luckycoin and Litecoin, both of which use the Scrypt technology in their proof-of-work algorithm. This means miners are required to use FPGA and ASIC devices, rather than the SHA-256 Bitcoin mining equipment. After just 72 hours of its launch, Dogecoin’s value jumped 300%, with billions of coins being traded every day. Despite this impressive surge, Dogecoin experienced its first crash soon after due to China forbidding its banks from investing in Bitcoin.
Here’s a short timeline in Dogecoin’s notable events:
- December 2013: The first major Dogecoin theft occurred when millions of coins were stolen from the online cryptocurrency wallet platform Dogewallet.
- January 2014: The trading volume of Dogecoin surpassed that of Bitcoin and all other cryptocurrencies combined, although its market capitalization remained substantially behind that of Bitcoin.
- March 2014: Dogecoin changed from offering a random reward for each mining block to a static block reward.
- 2015:Co-founder Jackson Palmer left the cryptocurrency community.
- July 2020: the price of Dogecoin spiked to $1
- May 2021: SpaceX announced a rideshare mission to the Moon completely funded by Dogecoin, thus becoming the first space mission funded by a cryptocurrency. It was named DOGE-1.
- August 2021: the Dogecoin Foundation announced the “re-establishment of the Dogecoin Foundation (est 2014), with a renewed focus on supporting the Dogecoin Ecosystem, Community and promoting the future of the Dogecoin Blockchain.
The Foundation was reinvigorated by the addition to its Board of notable advisors, such as Vitalik Buterin (Ethereum co-founder and inventor) and Jared Birchall (representing Elon Musk).
Musk Sued Over Dogecoin
Recently, tech mogul Elon Musk has been the center of attention due to some controversial claims being filed against him for allegedly participating in an illegal dogecoin pyramid scheme.
Dogecoin investors are accusing the billionaire of taking part in a fraudulent scheme, but Musk strongly denies the allegations, calling them a “fanciful work of fiction”. Backed up by high-power attorneys, Musk is attempting to defend himself from the accusations.
Despite the lawsuit, Musk has been actively showing his support for the digital currency and its corresponding mascot, the Shiba Inu. His tweets and public statements advocating the currency have created a wave of attention in the cryptocurrency industry, with potential investors flocking to the market and leading to a surge in the value of Dogecoin.
However, it is uncertain if this increased attention will be a boon or a disaster in the long run. Governmental organizations may become involved depending on the outcome of the lawsuit, leading to potential regulations and restrictions on the currency.
It is difficult to predict the impact of Musk’s support right now, but it’s safe to say that his words about dogecoin have definitely caused a stern ripple effect in the cryptocurrency world.