After the arrogance comes the fall. It should have been clear to many that the Dogecoin hype could not have a glorious end. Now even Elon Musk probably can’t save the altcoin.
Nothing plays into the hands of the eternal crypto complainer like the course of the fun coin Dogecoin (DOGE). The crypto currency archetypically stands for exactly what critics see in the entire crypto sector: too volatile, no fundamental value and in the end everything is just speculation. These three attributes may not apply to the overall market, but they certainly apply to DOGE. A look at the chart alone proves this.
Because it was said on BTC-ECHO in April “DOGE out of control: 80 percent price growth in 24 hours”, the dog coin looks more like a doused poodle these days. The book is negative 20 percent in the last 24 hours and minus 42 percent in the last seven days. A – with all due respect – a terrible performance.
Only Internet Computer (ICP) performed slightly worse than DOGE in the ranks of the top 20 coins over a seven-day period. The coin with the Shiba Inu dog in the logo is further away than ever from its all-time high these days: Anyone who entered the top at $ 0.73 and has held to this day is around 76 percent under water.
SNL debacle as a crash catalyst
The beginning of the end can, however, be dated quite precisely. Because May 8th marks not only the date of the Doge’s peak, but also Elon Musks, aka “Dogefathers”, appearance on Saturday Night Live (SNL), one of the broadest-reaching television programs in the USA. In advance, the expectations of an Elon-induced doge pump were enormous. But the exact opposite should set in. Instead of the expected advertising block for DOGE, Musk did not say a word about his favorite coin at the beginning – even the later format, which was exclusively dedicated to DOGE, did not calm the market mood. And so, since the inglorious Musk appearance on the sketch show, there has been a sale of over 64 billion US dollars on the Dogecoin market (including a further loss of reputation of the richest man in the world).
The story proves once again that the crypto market is anything but mature. For the eternal reminders, stories like these are grist to the mill – and the SEC also has further arguments with regard to its mantra that Bitcoin and Co. are not immune from market manipulation and that an ETF is therefore inadmissible, on the credit side.
Dogecoin is a coin launched in 2013 by Jackson Palmer and Billy Markus, which was created over corners from a Bitcoin fork. Just like BTC, DOGE is a proof-of-work coin, which is why Musk’s criticism of the energy consumption of this consensus mechanism does not seem credible. Unlike the Bitcoin model, however, the makers have opted for an inflationary scheme. Instead of an ever-decreasing inflation rate, the doge supply grows evenly – and thus dilutes the existing supply. You can find more about Dogecoin in our corresponding Academy entry.
And what does Elon Musk do? He is silent.