The relationship between cryptocurrencies and Elon Musk has divided the world. The emerging data, however, could fuel the debate. Reports have emerged suggesting that the world’s richest man, Elon Musk, may secretly be financing the development of Dogecoin (DOGE).
On August 31, The Wall Street Journal reported that Elon Musk secretly financed the development of Dogecoin. This statement has taken Elon Musk’s relationship with the dog-themed cryptocurrency to an intriguing new level.
Starting as a fun internet meme in 2013, DOGE gained significant attention when Elon Musk publicly announced in 2021 that Tesla would accept Dogecoin for some of its products. In August of the same year, various organizations reported that Musk would serve as an advisor to the Dogecoin Foundation and strengthen his connection to the project.
However, in October 2021, Musk distanced himself by saying, “I have no connection to the Dogecoin Foundation.” Nevertheless, despite these contradictory statements, Musk’s ties to DOGE continue. Musk acquired Twitter in April 2023 and replaced its logo with an iconic blue bird symbolizing Dogecoin’s Shiba Inu dog. This move seemed to indicate Musk’s intention to integrate DOGE into his Twitter-based plans.
These statements came at a time when the crypto market was experiencing high volatility. The recent slowdown in the Bitcoin price rally affected not only Bitcoin but also Dogecoin, which has seen a 90% drop from its all-time high of $0.73 in May 2021. The crypto community, along with many curious about the potential impact of Musk’s secret financing on the crypto world, is preparing for a potentially turbulent September.
However, although the extent of Musk’s financial involvement in Dogecoin’s development remains undisclosed, his ambitious plans for the cryptocurrency are evident. Musk has previously expressed a desire to elevate Dogecoin to overshadow Bitcoin and has stated that Dogecoin aims to become the world’s currency.
In 2021, Dogecoin, which managed to stay in the top ten of cryptocurrencies for a short period amid meme coin and influencer-driven rallies, saw its value fluctuate alongside the broader crypto market in 2022. Despite the fluctuations, it retained a significant portion of its gains, resulting in a combined Dogecoin network worth approximately $8.9 billion, according to CoinMarketCap data.
Meanwhile, Elon Musk’s involvement in Dogecoin could indicate potential developments that could reshape its price and applications in the future. Most importantly, the official endorsement of funding by Musk himself could potentially propel the DOGE price to its peak after a long period of fluctuation. At the time of writing, DOGE was trading at $0.0638 after a 0.06388% increase in the past seven days.