Musk "got into trouble" again and brought flying dog coins. On April 4th, Twitter, a social media platform owned by former world's richest man Musk, suddenly changed its long-standing "Blue Bird" logo to the "dog head" of the Chaigou image, which coincided with the logo of the cryptocurrency Dogcoin, causing it to skyrocket by 30%
Musk "got into trouble" again and brought flying dog coins. On April 4th, Twitter, a social media platform owned by former world's richest man Musk, suddenly changed its long-standing "Blue Bird" logo to the "dog head" of the Chaigou image, which coincided with the logo of the cryptocurrency Dogcoin, causing it to skyrocket by 30%.
However, compared to the previous rapid rise of dog coins in the market, the rise in dog coins caused by Musk did not last for too long. After breaking through $0.1, the trading price of Gougou Coin fell slightly and remained fluctuating around $0.096 on April 5th. In the view of analysts, the influence of news factors on the trend of cryptocurrencies means that it is difficult to demonstrate their actual value, and there are various risks hidden in such trading models.
Blue Bird Becomes Dog Head
Dog coin skyrocketed by 30%
Is Dog Coin a Twitter endorsement? On April 4th, former world's richest man Musk suddenly changed the "Blue Bird" logo on his social media platform Twitter, which had been in use for many years, to "Dog Head", which sparked heated discussions. Twitter's "new avatar" is precisely the yellow firewood dog "Dog Head" widely used as an emoticon, which also aligns with the logo of Dog Coin.
(Image source: Twitter)
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' for Dogcoin has also become a hot topic on Twitter.
(Image source: 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.
(Image source: Twitter)
Affected by the news, Gougou Coin surged in response, rising from around $0.077 to above $0.104 in a short period of time. The trading price reached a new high since December 2022, with an increase of over 30% at one point. According to CoinGecko, a global currency website, the total market value of Dogcoin reached $13.452 billion during this round of increase, ranking eighth in the cryptocurrency market.
It is worth mentioning that this is not the first time Musk has publicly mentioned dog coins. Since 2019, Musk has repeatedly posted content related to Dogcoin on Twitter and publicly stated that Dogcoin is his favorite cryptocurrency, jokingly calling himself the "Godfather of Dogcoin", and the price of Dogcoin has also fluctuated greatly under its influence. In January 2021, Gougou Coin experienced a crazy trend of a 24-hour surge of over 900%, which is closely related to Musk's release of dog photos through Twitter.
However, compared to the previous crazy trend, this round of dog coin's rise has not continued for a long time. After reaching a recent high, the trading price of dog coins has fallen slightly. As of 17:30 on April 5th, the price of dog coins has dropped below $0.1, to $0.096, a decrease of 1.1% within 24 hours.
(Image source: CoinGecko)
Wang Peng, a researcher at the Beijing Academy of Social Sciences and the Intelligent Social Governance Research Center of Renmin University of China, analyzed that the change in the trading price of Dogcoin once again illustrates the impact of news factors on the trend of cryptocurrencies. This situation also indicates that it is difficult for cryptocurrencies, including dog coins, to demonstrate their actual value. There are various hidden risks in this type of trading mode, which can easily lead to market manipulation, and the absence of price limits or trading time limits for cryptocurrencies further amplifies the risks.
Musk Accused of Selling Dog Coins
The celebrity effect is unreliable
According to public information, Dogcoin was born in December 2013, with an exaggerated and playful dog head icon on its logo. Its founder intended to satirize the speculative atmosphere surrounding Bitcoin. Afterwards, due to the large circulation and low transaction prices of dog coins, they became a tipping system on social platforms such as Reddit and Twitter, used to reward the creation or sharing of high-quality content. But after the dog coin was hyped up, its founder publicly announced his withdrawal from the dog coin community.
Musk's change of logo on Twitter has sparked a stir in Dogcoin and sparked heated discussions on domestic social media. Some users pointed out that "I thought it was fake news" and "April Fool's Day has already passed". In the discussion area of relevant information, some users also questioned Musk's move as "unreliable" and questioned Musk's use of public opinion to manipulate the trading price of dog coins and profit from it after the price rose.
Beijing Business Daily reporter learned that Musk has repeatedly mentioned dog coins in the past, which has also led him to a lawsuit and accused him of promoting dog coins through pyramid schemes. In June 2022, a US dog coin investor filed a lawsuit in court, alleging that Musk and its subsidiaries participated in and supported the "cryptocurrency pyramid scam", which resulted in him being deceived and seeking compensation of $258 billion.
According to foreign media reports, Musk submitted a legal document to the Manhattan Federal Court on March 31, requesting the judge to dismiss the $258 billion dog coin lawsuit. His lawyer stated that such methods of posting supportive comments and related images are not illegal.
A coin circle user pointed out to a Beijing Business Daily reporter that compared to cryptocurrencies with high prices and market capitalization such as Bitcoin and Ethereum, dogcoin has completely opposite characteristics. For "merchants", the operating space is greater, the pulling pressure is less, and the influence of celebrity effects is added, making it easy to become manipulated objects.
On March 23rd, Sun Yuchen, who also has a high reputation in the currency industry, was sued by the US Securities and Exchange Commission for using celebrity influence to manipulate the market and induce investors. Wang Peng believes that celebrities using cryptocurrency platforms or making supportive comments can easily arouse users' interest in cryptocurrency and attract more ordinary investors to participate. This is clearly not a legitimate investment or trading logic. This type of pattern is unreliable.
Wang Peng emphasized that the uncertainty of cryptocurrencies is high, and there is a serious mismatch between transaction prices and actual values. For any behavior involving cryptocurrency transactions, users should be vigilant, not attracted by so-called high returns, recognize its essence, and stay away from illegal currency speculation.
Beijing Business Daily reporter Liao Meng
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