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

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DOGE is about to make its popular culture debut. 

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

Musk’s fascination with the digital forex dates again to final 12 months, and he has lately solely appeared to double-down on what may be an elaborate social media prank. Whereas certainly one of his firms, electrical carmaker Tesla, added BTC to the steadiness sheet final 12 months, the entrepreneur nonetheless appears to strategy crypto typically with a contact of befuddlement — admitting that blockchain might be the way forward for human commerce, whereas additionally poking enjoyable at its absurdities. 

“What could be essentially the most ironic consequence? That the forex that was invented as a joke in reality turns into an actual forex,” he mentioned of Doge in an interview in February.

The market, nevertheless, takes his possibly tongue-in-cheek Tweets very seriously. Whereas the correlation could also be unfastened and complicated, a number of research have demonstrated that Musk tweeting concerning the forex tends to drive it greater. 

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

Likewise, an analysis from Protos discovered that 4 of his tweets had a double-digit percentile influence on DOGE’s worth (his tweets about Bitcoin and Ethereum can also transfer these markets, however DOGE’s decrease marketcap makes it simpler to pump).

DOGE is notably inclined to buzz, with social media quantity — especially positive sentiment social media volume during American daytime hours — constantly driving the forex greater.

Whether or not or not a sketch on Saturday Evening Reside may have the same impact stays to be seen. The present performed a music-heavy explainer on nonfungible tokens in March, although NFT prices may have retreated in a ‘silent crash’ since then.