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Dogecoin is a meme-coin, a cryptocurrency that should not be taken seriously because it was created as a joke.
That is the unchangeable truth. At least, many in the crypto-community would have you believe so. However, one individual, a very powerful and prominent individual, may be attempting to turn that reality on its head – Elon Musk.
Right now, Tesla’s CEO is more than simply a guy. He’s become a brand, a buzzword to be associated with. In fact, his influence on the crypto-market has been so significant that Bitcoin and Dogecoin have risen dramatically as a result of his most popular tweets. The latter, in particular, owes its current shape to Musk.
Could that, however, be coming to an end? Is Musk now seeing and presenting DOGE in a different light than he did previously?
Change in plans
Until recently, one of Musk’s few contributions to the Dogecoin community was a small collection of memes, puns, and smart wordplay. And, yes, it was all ridiculous, but no one had any illusions about it either. Musk’s tweets aided DOGE’s rise, and as long as individuals could cash in on their short-term ROIs before the “bubble” burst, everyone was pleased.
However, something appears to have shifted recently. Yes, Musk is still interested in memes and other frivolities, but he is also becoming more immersed in the nitty-gritty of a bitcoin economy.
Consider this – Less than 48 hours ago, Musk tweeted that he was soliciting developers’ interest to improve DOGE’s transaction efficiency. Less than 24 hours ago, the Tesla CEO went on to categorically state,
With Elon as “Doge CEO”, we are in good hands! 🚀
— 💸💸💸 (@itsALLrisky) May 25, 2021
On the surface, it appears that the world’s richest man is just showing an interest in a cryptocurrency for which he is unofficially the face.
However, if you look closely, you’ll notice that Musk has made a concerted effort to address the two main objections leveled by DOGE in the past. The purported concentration of supply and control, as well as the lack of a set core development team, have been among the most prominent complaints leveled against Dogecoin.
Consider this: if a tweet of yours, with warped images of dogs and moons, has the impact of increasing the value of a cryptocurrency by 20% in a single day, can you truly declare that “my ability to take action is limited?”
Why so serious?
Why, however, is Tesla’s CEO departing from his tried and true strategy of wacky DOGE-hyping via jokes and memes? The simplest and most logical interpretation is that he is attempting to establish Dogecoin’s position as a “actual crypto” in the eyes of the public.
At this point, it is hard to speculate on what may have prompted the shift in marketing strategy. Furthermore, it may be too early to predict how the furious DOGE community would react to the same. However, there were some indications that things were not as bright as they previously were.
Take a look at DOGE’s daily active addresses, for example. While the figure reached as high as 222.52k on the 9th of May, it has dropped to 54.63k at the time of writing. Such a drop appeared to reflect that the “new wave of investors” that characterized DOGE’s early results had just faded.
Finally, at press time, DOGE’s short-term 7-day ROI was found to be -13 percent, implying that the cryptocurrency hasn’t even been the short-term profit-taking asset many regard it as.
However, a few considerations must be considered. To begin, the previous week or two has been quite challenging for the majority of the market, with Bitcoin, Ethereum, and other cryptocurrencies all seeing big corrections. As a result, a comparable drop from DOGE should not be predicted. However, historically, the altcoin has traded independently of the rest of the market. With DOGE fresh off a high, there seemed to be no reason why it couldn’t this time.
Finally, it is possible to make the case that there is little indication that the DOGE community is not ‘buying’ Musk’s ‘serious’ plan. However, this raises another question: why haven’t any of Musk’s earlier tweets had such a “impact”?
In any case, it appears that both Musk and the DOGE community have a long way to go, whatever their visions of Dogecoin’s future are.