Sentiment surrounding cryptocurrencies has soured over the final two years. The complete worth of all tokens throughout the business hit an all-time excessive of $2.8 trillion in 2021, however that determine now sits 60% decrease at simply $1.1 trillion.
Why would not it? Some of the business’s most coveted and trusted exchanges and initiatives have collapsed in spectacular style. Regulators are nonetheless making an attempt to observe down billions of {dollars} in lacking buyer funds from the bankrupt FTX change, which was one in all the largest failures to date.
Tesla CEO Elon Musk has broadly supported crypto know-how, although he has undoubtedly been most vocal about speculative token Dogecoin (CRYPTO:DOGE), which dons a Shiba Inu canine as its mascot. That hasn’t essentially modified, however he made a digital look at The Wall Street Journal‘s CEO council in London on May 23 and adopted a extra cautious tone total.
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Elon Musk and Dogecoin have a wild historical past
It’s honest to say Musk has been one in all Dogecoin’s best supporters. He first used Twitter to convey his enthusiasm for the token in 2019, however that commentary ramped up all through 2020 and 2021, when he typically recommended Dogecoin may play a key position in the world monetary system. Sometimes he’d use humorous memes to make that time, so whether or not he was ever critical is a thriller.
There was additionally an apparent drawback: Few companies wished to settle for Dogecoin as fee for items and companies. Even right this moment, simply 2,158 retailers round the world are prepared to transact with the token. Not many individuals believed the cryptocurrency was ever something greater than a car for hypothesis.
The Musk-Dogecoin saga reached a crescendo in May 2021 when he hosted the tv present Saturday Night Live, the place punters broadly anticipated he’d ship some kind of groundbreaking information that will drive Dogecoin’s worth to the moon. As it seems, he did not, and that occasion marked the peak — Dogecoin hit an all-time excessive of $0.74 per token, and it has since crashed by 90% to commerce at simply $0.07 right this moment.
To Musk’s credit score, he has continued to again up his assist with concrete motion. In early 2022, Tesla began accepting Dogecoin as fee in its on-line retailer for merchandise merchandise. Later that yr, he launched a perfume known as Burnt Hair, which customers may additionally purchase utilizing Dogecoin.
Unfortunately, none of these initiatives have boosted the token’s languishing worth.
Now Musk is advising warning
At the CEO council earlier this week, Musk mildly reiterated his enthusiasm for Dogecoin. He stated it is nonetheless his favourite cryptocurrency as a result of it has “the best humor” and due to its canine mascot.
However, he stated he wasn’t advising anybody to purchase cryptocurrencies in any respect, and actually not to “bet the farm” on Dogecoin. He adopted by saying, “Maybe you should, but let me advise you that would be unwise.”
He’s virtually actually proper. There aren’t many catalysts that can enhance Dogecoin from right here. While Bitcoin, the world’s largest cryptocurrency, has delivered a return of practically 60% in 2023 up to now, Dogecoin is totally flat yr to date. Not even improved investor sentiment surrounding the crypto business is sufficient to ignite the meme token.
Plus, Musk has a lot larger issues on his plate. After buying social media platform Twitter for $44 billion final yr, he is been combating to maintain it afloat, saying lately it was just some months away from chapter. Not to point out that Tesla continues to dominate the electrical car business and is racing to launch its synthetic intelligence-powered robotaxi.
Musk works on these initiatives when he is not busy making an attempt to launch his SpaceX Starship into orbit, after all.
All in all, Dogecoin is unlikely to discover itself at the prime of Musk’s precedence listing anytime quickly, and it is unlikely the token will discover the legs to run greater organically.
10 shares we like higher than Dogecoin
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Anthony Di Pizio has no place in any of the shares talked about. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure coverage.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
