The cryptocurrency, Dogecoin, jumped in value after Elon Musk tweeted that he would continue buying it.
On Sunday, within 24 hours of Musk tweeting ‘I will keep supporting Dogecoin’, the meme coin surged about 8.5% in value.
In response to another Twitter user telling Musk to ‘keep buying it then’, the billionaire replied that he was.
In just an hour after Musk’s tweet, Dogecoin jumped to $0.056, after seeing record lows the past month.
Last week, the market value of cryptocurrencies fell below $1 trillion for the first time since January 2021.
Bitcoin, the largest cryptocurrency, hit an 18-month low of $23,750. On Sunday Bitcoin was valued at $18,300 after sliding under $20,000 on Saturday, according to CoinDesk.
The global cryptocurrency market peaked at $2.9 trillion in November 2021 but has been seeing a steady downturn this year.
Musk has previously posted several tweets in favour of the Dogecoin calling it his ‘favourite’. He had even said that he ‘bought some dogecoin’ for his son X Æ A-Xii.
In 2021, Musk said that his electric car company, Tesla would start accepting payment for merchandise in Dogecoin. The news drove up the value of the meme coin by 25%.
Dogecoin is currently valued at £0.050, falling from its peak in May 2021.
Just last week, Musk was sued for £209 billion over an alleged ‘Dogecoin pyramid scheme’. An unhappy a Dogecoin investor filed a complaint accusing Musk of racketeering for hyping Dogecoin and driving up its price, only to then let the price tumble.
What is Dogecoin?
Dogecoin is a cryptocurrency based on the popular ‘doge’ meme and features a Shiba Inu on its logo.
The open-source digital currency was created by Billy Markus and Jackson Palmer in December 2013. Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme.