Elon Musk, DOGE market maker? Meme foreign money pumps as SNL skit looms

DOGE is ready to make its popular culture debut. 

As a weeklong pump carries the meme cryptocurrency up 12% on the day by day to $.33 and a staggering 43.8% greater on a 7-day foundation, some are actually speculating the rally could possibly be fueled maybe partly by a social media tease from billionaire Elon Musk that he’ll be taking part in a Saturday Evening Dwell sketch titled “The Dogefather.” 

Musk’s fascination with the digital foreign money dates again to final yr, and he has just lately solely appeared to double-down on what could also be an elaborate social media prank. Whereas one in every of his corporations, electrical carmaker Tesla, added BTC to the stability sheet final yr, the entrepreneur nonetheless appears to strategy crypto typically with a contact of befuddlement — admitting that blockchain could possibly be the way forward for human commerce, whereas additionally poking enjoyable at its absurdities. 

“What can be probably the most ironic final result? That the foreign money that was invented as a joke the truth is turns into an actual foreign money,” he stated of Doge in an interview in February.

The market, nevertheless, takes his probably tongue-in-cheek Tweets very critically. Whereas the correlation could also be unfastened and sophisticated, a number of research have demonstrated that Musk tweeting in regards to the foreign money tends to drive it greater. 

In January, the Blockchain Analysis Lab revealed a paper, “How Elon Musk’s Twitter exercise strikes cryptocurrency market,” that discovered six cases of Musk’s social media exercise propelling DOGE greater.

Likewise, an evaluation from Protos discovered that 4 of his tweets had a double-digit percentile impression on DOGE’s value (his tweets about Bitcoin and Ethereum may additionally transfer these markets, however DOGE’s decrease marketcap makes it simpler to pump).

DOGE is notably vulnerable to buzz, with social media quantity — particularly constructive sentiment social media quantity throughout American daytime hours — persistently driving the foreign money greater.

Whether or not or not a sketch on Saturday Evening Dwell could have an analogous impact stays to be seen. The present performed a music-heavy explainer on nonfungible tokens in March, although NFT costs could have retreated in a ‘silent crash’ since then.