Musk is "doing things" again, taking Dogecoin with him again. On April 4, the social platform Twitter under the former richest man Mask suddenly changed the logo of "Blue Bird", which has been used for many years, to the image of "dog head", which coincided with the logo of Cryptocurrency Dogecoin, causing a 30% surge in Dogecoin
Musk is "doing things" again, taking Dogecoin with him again. On April 4, the social platform Twitter under the former richest man Mask suddenly changed the logo of "Blue Bird", which has been used for many years, to the image of "dog head", which coincided with the logo of Cryptocurrency Dogecoin, causing a 30% surge in Dogecoin.
However, compared with the rapid rise of Dogecoin "out of the circle" before, the rise of Dogecoin caused by Musk did not last for too long. After breaking through US $0.1, the trading price of Dogecoin fell back and kept fluctuating around US $0.096 on April 5. In the view of analysts, news factors affect the trend of Cryptocurrency, which means that it is difficult to demonstrate its actual value, and there are many risks hidden in this type of trading mode.
Blue Bird Becomes Dog Head
Dogecoin soared by 30%
Dogecoin endorses Twitter? On April 4, Mask, the former richest man in the world, suddenly changed the "Bluebird" logo of his social platform Twitter, which has been used for many years, to "Dog's Head". The "New Head" of Twitter is just the yellow firewood dog "Dog's Head", which is widely used as an expression pack, and also fits in with the logo of Dogecoin.
According to Twitter's official website, the original Blue Bird logo in the upper left corner of Twitter's homepage has now changed to a yellow dog head, but whether this change is permanent remains to be further verified. The code DOGE of Dogecoin has also become a hot word on Twitter.
Meanwhile, after changing the icon on Twitter, Musk posted an image on his own Twitter that appeared to respond to the icon change. The picture shows a firewood dog sitting in a car saying to the police officer holding the blue bird identification information, "That's an old photo. The content of Musk's tweet has been read over 64 million times and forwarded nearly 80000 times. Some users have also posted photos combining "Blue Bird" and "Dog Head", which have caused many users to repost.
Influenced by the news, the Dogecoin rose sharply, rising from around 0.077 dollars to above 0.104 dollars in a short time, and the transaction price hit a new high since December 2022, with an increase of more than 30%. According to data from CoinGecko, a global currency price website, the total market value of Dogecoin has reached US $13.452 billion in this round of increase, ranking eighth in the Cryptocurrency market.
It is worth mentioning that this is not the first time that Musk publicly mentioned Dogecoin. Since 2019, Musk has published Dogecoin related content on Twitter for many times, and has publicly said that Dogecoin is his favorite Cryptocurrency, and jokingly called himself "the godfather of Dogecoin", and the price of Dogecoin has also fluctuated greatly under its influence. In January 2021, the Dogecoin had a crazy trend of soaring more than 900% in 24 hours, which was also closely related to Musk's release of dog photos through Twitter.
However, compared with the previous crazy trend, the current round of Dogecoin rise did not last for a long time. After hitting a recent high, the trading price of Dogecoin fell back. As of 17:30 on April 5, the price of Dogecoin had fallen below US $0.1, to US $0.096, down 1.1% in 24 hours.
Wang Peng, a researcher from the Beijing Academy of Social Sciences and the Research Center for Intelligent Social Governance of Renmin University of China, said that the change in the transaction price of Dogecoin once again shows how news factors affect the trend of Cryptocurrency. This situation also shows that Cryptocurrency, including Dogecoin, is difficult to demonstrate its actual value. There are many risks hidden in this kind of trading mode, which can easily lead to market manipulation. The absence of price limit and trading time limit for Cryptocurrency further magnifies the risks.
Musk Is Accused of Selling Dogecoin
The celebrity effect is unreliable
Public information shows that Dogecoin was born in December 2013, and its logo has a dog head icon with an exaggerated and playful meaning. Its founder intended to satirize the speculative atmosphere around Bitcoin. Since then, due to the large circulation of Dogecoin and the low transaction price, it has become a tip reward system on social platforms Reddit and Twitter, which is used to reward the creation or sharing of high-quality content. However, after the popularity of Dogecoin, its founder publicly announced his withdrawal from the Dogecoin community.
Musk changed his logo through Twitter, which triggered changes in Dogecoin, and also sparked heated debate on domestic social media. Some users pointed out that "I thought it was Fake news" and "April Fools'Day has passed". In the discussion area of relevant information, some users also questioned that Musk's move was "unreliable", and that he used public opinion to manipulate the trading price of Dogecoin to profit from the rising price.
The reporter of Beijing Business Daily learned that Musk repeatedly mentioned Dogecoin in the past, which also led him to a lawsuit and accused him of selling Dogecoin in the form of pyramid selling fraud. In June 2022, an American Dogecoin investor filed a lawsuit to the court, pointing out that Musk and its subsidiaries participated in and supported the "Cryptocurrency pyramid scam", which led to their own deception and claimed 258 billion dollars.
In addition, according to foreign media reports, Musk submitted legal documents to the Manhattan Federal Court on March 31, requesting the judge to dismiss the Dogecoin lawsuit with a claim of 258 billion dollars. His lawyer stated that such methods of posting supportive comments and related images are not illegal.
A currency circle user pointed out to the reporter of Beijing Business Daily that compared with Cryptocurrency with high prices and market values such as Bitcoin and Ethereum, Dogecoin and other Cryptocurrency have completely opposite characteristics. For "dealers", they have more operating space, less pressure to pull orders, and are easy to be manipulated due to the influence of celebrities.
On March 23, Justin Sun, who also has a high reputation in the currency circle, was sued by the US Securities Regulatory Commission for manipulating the market and inducing investors by using the celebrity effect. Wang Peng believes that celebrities who are Cryptocurrency platforms or make supportive comments are likely to arouse users' interest in Cryptocurrency and attract more ordinary investors to participate in it, which is obviously not a formal investment and trading logic. This type of pattern is unreliable.
Wang Peng stressed that the uncertainty of Cryptocurrency is high, and there is a serious mismatch between the transaction price and the actual value. Users should be alert to any behavior involving Cryptocurrency transactions, not be attracted by the so-called high yield, understand its essence, and stay away from illegal speculation.
Beijing Business Daily reporter Liao Meng
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