Dogecoin Soars on Tweets from Both Elon Musk and Mark Cuban

Cryptocurrency Dogecoin was seeing a big move in price after both Tesla CEO Elon Musk and billionaire investor Mark Cuban tweeted about it.
Dogecoin soared 20% in the last 24 hours to 32 cents, according to data from Coin Metrics.

The meme-inspired cryptocurrency, which started at first as a joke in 2013, had even hit a record high above 45 cents earlier this month.

Dogecoin today is the sixth-largest digital coin with a total market value of almost $42 billion, according to CoinGecko. It takes its name and branding from the “Doge” meme, which depicts a Shiba Inu dog alongside nonsensical phrases in multicolored text.

Musk had once called dogecoin his “fav” cryptocurrency and “the people’s crypto.”

Musk took to his Twitter on Wednesday and said, “The Dogefather SNL May 8.” The Tesla CEO is planning to appear on “Saturday Night Live” on May 8th.

Mark Cuban, the owner of basketball team the Dallas Mavericks, said his team was on track to complete 6,000 dogecoin transactions in April.
“Doge is the one coin that people actually use for transactions,” Cuban said, when asked by a user why he was backing dogecoin. “People spend their Doge and that means more businesses will start taking it.”

Fans of the token have been requesting that Robinhood introduce a feature that would let them withdraw their holdings of various cryptocurrencies. On Tuesday, Robinhood’s co-CEO, Vlad Tenev, said the company was working on such a function.

“We’re working on deposits and withdrawals!” Tenev tweeted. “Not just for DOGE, but for all coins on Robinhood Crypto.”

Not all believe in the future of Dogecoin however. This is “a classic example of greater fool theory at play,” David Kimberley, an analyst at U.K. investing app Freetrade, told CNBC earlier this month.

“People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up, and then they can sell off and make a quick buck,” Kimberley said.

He did add however that “when everyone is doing this, the bubble eventually has to burst and you’re going to be left shortchanged if you don’t get out in time. And it’s almost impossible to say when that’s going to happen.”