Elon Musk and Dogecoin: How the Billionaire Became the ‘Dogefather’

As Dogecoin makes a comeback off the again of Bitcoin’s surge, some could also be pondering: The place did the asset come from? What’s it for? And what’s Tesla CEO Elon Musk obtained to do with it? 

The unique meme coin’s growth largely has the world’s richest man to thank. Musk’s obsession with shitposting helped increase the coin to a top 10 cryptocurrency.

It’s been a wacky experience over the previous few years, culminating in Musk’s appointment to co-lead a authorities company referred to as D.O.G.E.—sure, actually. However we’ll clarify all of it.

2018: What the DOGE?

Dogecoin is the largest and oldest meme coin and the second-biggest proof-of-work cryptocurrency. It was created in 2013 as a joke by builders Billy Markus and Jackson Palmer. 

The concept was to poke enjoyable on the large variety of altcoins and crypto tasks getting into the market following Bitcoin’s speedy ascent, and the coin loved relative obscurity and a low value throughout its early years. 

However then alongside got here Musk. The eccentric billionaire asked Palmer in a 2018 tweet to assist with the Twitter bot downside. Scammers had created a lot of faux high-profile accounts, including Musk’s, in an effort to push crypto cons. The scams usually posted faux Ethereum giveaways. 

It was the primary actual curiosity Musk had proven in Dogecoin.

2019: The pump begins

Musk began to pump Dogecoin the subsequent 12 months. “Dogecoin is perhaps my fav cryptocurrency,” he wrote in April 2019, in response to a screenshot of a ballot from the official Dogecoin account asking who must be the cryptocurrency’s CEO. “It’s fairly cool.”

The publish could be the primary of many to trigger the asset’s worth to rocket upwards. Quickly after Musk’s first tweet about Dogecoin, the market cap of the coin hit $400 million and crypto trade Huobi listed it.

Musk being Musk, nonetheless, didn’t cease there: He branded himself Dogecoin’s CEO—briefly—on Twitter earlier than persevering with to fireside out tweets asking if the coin is “actually a legitimate type of foreign money” or posting memes related to the unique dog-coin.

2020/2021: Bull run arrives

Musk continued to pump Dogecoin’s value right here and there together with his tweets, however issues actually obtained began through the 2021 bull run. Main exchanges like Coinbase Professional listed Dogecoin and the asset developed an even bigger cult following, to not point out rising mainstream consciousness.

DOGE gained a market cap larger than many firms within the S&P 500. And builders completely instructed Decrypt that that they had secretly been working with Musk since 2019 to make the coin a legitimate fee methodology and a greener, cheaper various to Bitcoin.

However issues obtained stranger when Musk called himself the “Dogefather” forward of a “Saturday Night time Dwell” skit in regards to the cryptocurrency—once more sending the asset’s value roaring upwards. DOGE would soar to its all-time excessive value of about $0.73 presently.

Musk’s “SNL” look ended up being underwhelming for Doge followers, with the SpaceX boss and his mom’s allusions to the coin in the end pushing its value down. Nonetheless, it continued to carry the unusual world of meme cash to the mainstream.

Later that 12 months, Musk announced that his rocket firm, SpaceX, would launch a satellite tv for pc to the moon—utterly funded by the cryptocurrency.

2022: Tesla/Twitter mania

The Doge mania continued into 2022 when Musk’s automotive firm began accepting Dogecoin for merchandise. 

Dogecoin continued to expertise value bumps when Musk purchased Twitter and rebranded it to X, hinting that it might additionally change into a funds platform which may, ultimately, integrate the O.G. meme coin. 

Issues got here again to chunk Musk later that 12 months, although, when an American man hit the billionaire and Tesla and SpaceX with a $258 billion lawsuit for allegedly pumping Dogecoin—an asset with “no worth in any respect,” based on the unique submitting.

However Musk and his attorneys scored a win this 12 months when a decide sided with them and dismissed the lawsuit, calling the tech entrepreneur’s tweets about Dogecoin “aspirational and puffery,” and noting that “no cheap investor may rely on them.”

2024: Trump, Musk, and D.O.G.E.

Dogecoin had a comparatively quiet 2023, however the meme coin has soared in latest months following Musk’s assist of Republican Donald Trump’s marketing campaign for the White Home.

That’s principally as a result of Trump mentioned that Musk would lead a authorities effectivity fee forward of being voted again into the seat of energy; Musk claimed that the division could be referred to as the Division of Governmental Effectivity—an acronym that matches Dogecoin’s ticker. 

Each time Musk talked about his future political function with the so-called DOGE forward of the election, the worth of Dogecoin jumped.

However earlier than Trump’s shock election win, Musk revealed what he has in all probability thought all alongside: that he isn’t significantly or concerned in Bitcoin, Dogecoin, or any cryptocurrency. He simply likes the meme coin.

“I’m truly not actively concerned in crypto,” he said at a rally. “I make Dogecoin jokes and stuff as a result of I simply form of like Dogecoin—as a result of it’s obtained the very best humorousness and it has canine and memes, and I really like all these issues.”

Nonetheless, the worth of Dogecoin boomed greater in latest weeks, hitting a three-year excessive value of $0.48—although it is fallen since, as of this writing. Musk has lately praised Dogecoin’s rate of inflation and tweeted out a well-recognized meme picture of a dust cloud with the Doge face engulfing a metropolis.

And President-elect Trump made it official that Musk, together with Bitcoin-savvy entrepreneur Vivek Ramaswamy, would lead the brand new administration’s division. The leaders have already talked up big plans for the DOGE department, plotting substantial suggestions for company price range cuts and mass firings, and going to Capitol Hill to debate with lawmakers.

Trump is even selling t-shirts exhibiting himself and Musk alongside Doge-esque art work.

Edited by Andrew Hayward

Editor’s word: This story was initially revealed on November 13, 2024. It was final up to date with new particulars on December 21.