On Tuesday, the meme-inspired cryptocurrency rose by 23 per cent when Elon Musk revealed that Tesla will accept dogecoin as payment for some items.
Musk has regularly praised dogecoin, referring to it as his favourite digital currency and mentioning it on NBC’s “Saturday Night Live.”
Dogecoin was created in 2013 as a joke by its inventors, Billy Markus, and Jackson Palmer. Its branding is based on the Japanese Shiba Inu dog, which inspired the original “doge” meme.
Musk’s tweets and a surge in amateur investor interest spurred a speculative craze in the cryptocurrency earlier this year, which affects the price of a coin.
The value of Dogecoin has risen from less than a penny at the start of the year to more than 74 cents in May. It has dropped 20 cents per coin, and the token is now down more than 70 per cent from its all-time high.
Some cryptocurrency investors feel dogecoin is a passing trend similar to “meme stocks” like GameStop and AMC and should not be taken seriously.
