Recently, a tweet from billionaire Elon Musk caused a stir in the crypto market. On Monday, he posted a photo that resulted in an increase in the price of Dogecoin.
Dogecoin saw its price increase by over 30% after Elon Musk’s tweet. On Monday, the meme coin traded as high as $0.10. With no signs of a major drop in the price, Dogecoin is still enjoying its price hike.
Elon Musk, the CEO of Twitter, tweeted a photo in which he had replaced the Dogecoin logo with the blue bird logo of Twitter.
This tweet of Elon Musk’s got over 32 million views, 46.5k retweets, and spawned comments from meme coin accounts such as BabyDoge, WoofWork ($WOOF), and FLOKI.
BabyDoge, WoofWork ($WOOF), and FLOKI – these meme coins also saw a price increase following the surge in the value of Dogecoin. BabyDoge rose by 6%, WoofWork ($WOOF) rose by 10%, and FLOKI rose by 11%.
Musk is accused of manipulating the price of Dogecoin, as the coin’s value increases each time he tweets something related to it.
On Friday, Musk asked a federal judge to dismiss a $258 billion lawsuit from 2022 that accused him of running a pyramid scheme for supporting Dogecoin.
Some investors accuse Musk of intentionally driving up the price of Dogecoin in the past few years, and then letting it fall.
Can you make a profit from the price increase of Dogecoin?
Whenever Elon Musk tweets about Dogecoin, the price of the coin quickly rises. It is observed that the price of Dogecoin remains high for a while after Musk’s tweets.
No one should trust the sudden increases in cryptocurrency prices, as the prices can fall just as quickly as they have risen.
If you’re thinking of buying Dogecoin due to its increasing price, hoping to make a profit, be aware that you are taking a great risk.
There is almost no chance of making a profit from the current Dogecoin price increase. Therefore, if someone is looking for a cryptocurrency to make a profit, then Dogecoin should not be their choice.
[Disclaimer: The content of this article is not intended as financial advice, and should not be construed as such. Neither readaboutcrypto.com nor the author is responsible for any investment decision made by any reader.]