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Dogecoin price: Elon Musk NOT what sets DOGE apart - unusual strength explained

Daily Express logo Daily Express 21/06/2021 Liam Doyle
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Dogecoin's rapid growth this year spread global financial uncertainty to the cryptocurrency market. The token's value lifted astronomically in January and has since oscillated from dizzying highs to sobering lows. Much of its movement has come off the back of one man's actions, adding to both DOGE's weakness and strengths.

What are DOGE's strengths?

DOGE's significant drop yesterday came following a tweet from Elon Musk, who was primarily responsible for setting the token on its path "to the Moon."

He commented on an article featuring Jesse Powell, CEO of trading platform Kraken, who said the Tesla chief has more "studying" to do on the token's fossil fuel usage.

Mr Powell claimed it was "greener" than critics suggested, prompting Mr Musk to ask "what data" he used for these conclusions.

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Elon Musk wearing a suit and tie: Dogecoin price DOGE strengths cryptocurrency investing evg © GETTY Dogecoin price DOGE strengths cryptocurrency investing evg a screen shot of a computer keyboard: Dogecoin price: Crypto © GETTY Dogecoin price: Crypto

Not long after, DOGE plummeted, dropping 1.9 percent of its value.

At 8.15am, investors could buy a token for $0.314, and at 1.15pm for $0.308.

Backers will want to know whether the coin has a chance of pushing past this volatility and recouping some value.

And according to one expert, Mr Musk is one driving factor behind its growth, but there is another unexpected and more influential pull.

a man looking at the camera: Dogecoin price: Sam Bankman-Fried © GETTY Dogecoin price: Sam Bankman-Fried

Speaking to the Jax Jones and Martin Warner Show podcast, Sam Bankman-Fried, the world's youngest billionaire and CEO of crypto exchange FTX, outlined two factors behind DOGE growth.

The first, he said, is cryptocurrency investor's allegiance to Mr Musk.

Mr Bankman-Fried said: "Elon is a powerful piece of this, he is actually the most influential man in the world when it comes to financial assets right now."

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a close up of a dog looking at the camera: Dogecoin price: Shiba Inu © GETTY Dogecoin price: Shiba Inu

"Everyone kind of knew he'd choose Dogecoin. And we chose Elon. We signed up for this.

"We signed up for some amount of self-aware mockery, for some amount of a sense of humour, and for some amount of challenging norms and saying well what makes your thing better than Dogecoin?"

While the Tesla CEO remains highly influential, Mr Bankman-Fried said what separates it from other currencies is humour.

He said the "funny looking dog" fuels interest, not the technology behind it, a factor that typically defines interest in other currencies.

He added: "It is objectively the funniest cryptocurrency. That's what separates it.

"It is not the tech, no one thinks it is the tech. No one even tries to argue it is the tech.

"No one who is buying it, buys it for the tech, for the product, for the roadmap.

"They buy it because it is just a funny-looking dog and the fact that it is pronounced Doge. That's why they bought it."

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