CEO of Tesla Inc. Elon Musk has always been in favour of the cryptocurrency Dogecoin. On May 24, 2021, the business tycoon reached out the developers through Reddit and GitHub towards improving the technology of Dogecoin. This will take the price of the crytocurrency higher. On May 25, 2021 it was noticed that Dogecoin went up by 10 percent to $0.35.
Post the announcement YouTuber and Tesla investor Dave Lee, asked the Tesla CEO why he preferred Dogecoin in front of polkadot, ethereum 2.0, iota and Cardano. Musk was clear with his answer and said that Doge has got the memes and dogs while the others do not. It has been an open secret that Musk has always been fond of Dogecoin and has earlier given hints that the digital currency could also be used as a form of payment for Tesla.
Musk in another Tweet towards his developers had said that he had received a suggestion that the fees for Dogecoin should be based on the phases of the moon. Despite being backed up by a big name like Elon Musk, Dogecoin has not been in good books due to its limited ownership by a small group of whales. But even then the cryptocurrency has managed to soar 7,000 percent so far in 2021. Musk has also called it as his favourite cryptocurrency. But at the same time it has also advised its investors that it would not be appropriate to invest too much in Doge.
It has been noticed that Nascent digital assets are facing an impressive consumer demand but people like Musk act like big crypto influencers that lead to uncertainty in the market. Due to this other digital currencies like Bitcoin face trouble. Last week Bitcoin faced a sudden downfall by $30,000 and this happened after Tesla suspended its payments by Bitcoin. Even China had announced that it could not be used as forms of payment.
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