If you’re familiar with the history of Dogecoin, the world’s most famous meme coin, then you’ll know that it has Elon Musk all over it. When the token first came to prominence in 2021, it was partially because Elon Musk kept tweeting about it, shouting it out, and even giving a nod to Dogecoin during his SNL appearance that year.
This gave Dogecoin some much-needed public visibility and clout, and it has since gone on to be very successful. But it turns out that this isn’t where the connection ends. Recently, it was revealed that the billionaire has actually been funding Dogecoin’s development over the years. This new information comes from an upcoming book by Musk biographer Walter Isaacson.
Musk’s Love for Crypto
It is no secret that Elon Musk is passionate about cryptocurrencies. He has shown support for several over the years and at a point, Tesla was going to accept Bitcoin as a form of payment, though it backed out of these plans later on. Dogecoin seems to have always been at the top of the list and Musk is putting his money where his mouth is when it comes to its development.
Giving Dogecoin Longevity
Dogecoin, like many meme coins, wasn’t taken very seriously when it was first launched. After all, it is based on a meme of a dog. It has retained use over the years, but it is very significant that Elon Musk gave money towards its development and not simply buy a stash of it and drive up the price.
For any cryptocurrency, especially a meme coin, to stay relevant in the market, it will need a strong underlying blockchain and use cases. In the last few years, Dogecoin’s management has been steadily developing more use cases for it.
These include the token being accepted on crypto casinos like Lucky Block casino to possible uses in the fashion and retail sector. There have also been hints of a new payment processing platform powered by Dogecoin to launch soon. These mean that Dogecoin can transcend its reputation as just another meme coin and have legitimate use cases for crypto users. Naturally, these sorts of developments can be done faster when you have a good pool of funds, so Musk’s financial backing does not hurt it in the least.
Better development means more potential price stability or a price spike for Dogecoin, especially as the crypto winter begins to thaw. For users, this means that Dogecoin could be more profitable and easier to use.
Musk’s Social Capital for Dogecoin
Love him or hate him, we have to admit that the world pays attention to Elon Musk. Businesses he has endorsed have seen their share price go up, he has an army of loyal supporters who will believe in the cryptos he pushes, and the world’s media will report on what he does.
The fact that he is still supporting Dogecoin so openly years after it hit the scene grants it some level of legitimacy. After all, if Dogecoin’s biggest supporter hasn’t jumped ship, then clearly there is still hope for it.
This support also means that Musk could potentially have Dogecoin be a part of his business ventures. Before he bought over Twitter/X, he had been teasing a blockchain-based social media site that would allow for the use of Dogecoin.
The current iteration of Twitter/X doesn’t, but it very well could in the future, especially given his aggressive efforts to monetize the platform. And let’s not forget there is still the chance to buy a Tesla with Dogecoin.
Source: https://www.analyticsinsight.net/the-elon-musk-dogecoin-connection-what-this-means-for-crypto-users/