According to Coinmarketcap, the cryptocurrency Dogecoin (Doge) was worth $0.11-$0.14 in the months leading up to the US election but immediately doubled after Mr. Trump was elected, reaching $0.30 on November 12. Two days later, the meme coin, also known as the "joke" cryptocurrency, continued to rise to a peak of $0.40 when billionaire Elon Musk became the head of the Government Efficiency Board, similarly abbreviated as DOGE.
Dogecoin is a cryptocurrency created as a joke by experts Billy Markus and Jackson Palmer to criticize the Bitcoin craze since 2013. It is inspired by the Doge meme, which shows a Shiba Inu dog with a confused face. It is based on Litecoin, which has a faster mining speed than other cryptocurrencies and is not limited like Bitcoin.
Elon Musk, one of Trump's closest allies, is known for his support of Dogecoin. He has repeatedly posted related information that has made Dogecoin players feel like they are on a 'roller coaster' due to the constantly fluctuating prices.
In 2021, the billionaire took on a character in the television show Saturday Night Live with the nickname Dogefather. However, when asked if Dogecoin was a joke, he replied: "Yes, it is a joke" and the cryptocurrency immediately dropped nearly 40%.
In the same year, the American billionaire conducted a poll on Twitter asking whether to accept buying Tesla cars with Dogecoin, pushing the cryptocurrency's price up by several percent. He announced he would not sell Dogecoin and was also working with developers to "improve the efficiency of the transaction system." The meme coin's price immediately rose 15% and surpassed $0.5 each.
In April 2023, he changed the Twitter logo to a Doge dog image, causing the cryptocurrency's price to soar over 20%. Three days later, he reverted to the blue bird symbol of the social network, and Doge immediately dropped 10% from $0.105 to $0.079 each.
In many other posts on social media, Tesla's CEO has repeatedly expressed his fondness for this cryptocurrency because it is "very funny and has a dog image." However, the American billionaire has also sparked controversy, with some suggesting he continually mentions Dogecoin as a tactic to gain attention, leading the community to idolize him.
Early last year, Musk was sued by a group of investors, accusing him of using his influence on Twitter to manipulate Dogecoin prices, causing them to lose billions of USD. The group claimed Musk intentionally inflated the meme coin's price by 36,000% over two years, then let it free fall.
In mid-August, Elon Musk was acquitted by the court on the grounds that the posts on Twitter/X "merely reflected exaggeration." The judge stated that it was "incomprehensible" for the plaintiff to rely on social media messages for investment and then complain about the poster for market manipulation.
Not just Dogecoin, cryptocurrencies in general are experiencing higher prices after the United States elected its 47th president. Bitcoin on November 14 also reached a high of over $93,000 after starting the year at under $43,000.
According to AP, the market's excitement is due to the president-elect publicly supporting cryptocurrencies. Having previously described cryptocurrencies as "frauds," during the campaign, Donald Trump unexpectedly declared he would become the "crypto president," even wanting the remaining Bitcoins to be mined in the US. Experts believe he could elevate this sector.
"Trump's second victory in the White House is a pivotal moment for the cryptocurrency industry, not just in the US but globally," said Boris Bohrer-Bilowitzki, CEO of blockchain company Concordium in the UK, to CoinTelegraph on November 11.
Bohrer-Bilowitzki also remarked that the cryptocurrency market will react positively, at least until Trump takes office early next year. "The crypto community hopes the new president will have a more lenient stance on regulation, ensuring that policies do not slow down or hinder the development of this sector."
