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This Is Why Elon Still Supports Dogecoin
For more than a year, Elon Musk has been unwavering in his support of Dogecoin.
With the recent crypto crash and global economic uncertainty, his support is being put to the test.
Let’s take a look at why Elon is backing Doge through thick and thin, and the reason his support may be more important than ever.
Last week at the Qatar Economic Forum, Elon was pressed about his support for cryptocurrency by his interviewer John Micklethwait.
Micklethwait pointed out that Doge was down 80-90% from its all time high in 2021 before asking Elon if he still thought crypto was a good investment.
Elon responded by clarifying that he "never said people should invest in crypto."
He went on to explain that, as CEO for Tesla and SpaceX, he chose to buy Bitcoin as "a small percentage of our total cash and near-cash assets."
He added that Tesla accepts Doge for merch, and SpaceX will do the same.
At the same time, he reaffirmed his personal support for Dogecoin, saying, "I just know a lot of people who are not that wealthy who, you know, have encouraged me to buy and support Dogecoin so I'm responding to those people."
The interview likely raised a few eyebrows. Did Elon really never say to invest in crypto?
There are a couple things to keep in mind when deciphering his comments.
First, there's an ongoing lawsuit accusing him of running a racketeering enterprise to inflate the price of Doge.
The lawsuit implies that Elon, in his professional role as head of Tesla and SpaceX, sits at the top of a grand pyramid scheme to enrich himself and his companies by defrauding people through Dogecoin.
The SEC also has a history of gunning for Elon by using his own speech against him.
In 2018, he ran afoul of the SEC for tweeting that he was prepared to take Tesla private at $420. He was bogusly charged with securities fraud, and a court ruled that he had to have lawyers review his tweets before sending them out, a decision he is still fighting.
The accusations are far-fetched, but Elon can't give his enemies any ammo.
For this reason, he has to take a measure of caution when speaking about Doge in a professional capacity, no matter how silly it seems.
That said, as a private citizen, he's free to back whatever he wants. And there's nothing he supports more than Doge—for good reason!
The People's Stimulus
Elon started seriously backing Doge in February 2021.
At the time, he insisted that no single entity own more than 5% of all Doge as a condition for his continued support.
As a result of the ultimatum, ownership of Dogecoin is widely distributed among small holders, most of whom aren't wealthy.
On Tuesday, Elon acknowledged exploding gas prices by posting a widely circulated meme of a 7-11 gas station whose gas prices were $7.11.
Some investigative sleuthing uncovered that the photo actually dated back to March 2021, when the gas station was testing its sign.
Incredibly, the real gas price at the station on the day of the tweet was $6.09—still ridiculously high!
In an amazing synchronicity, Tesla's share price closed at $711.11 on the same day he posted the meme. Elon tweeted then deleted a screenshot of Tesla's stock price.
Historic energy prices are the most visible factor hurting American workers, and have the downstream effect of making everything else more expensive.
At a moment when impersonal forces are eroding the purchasing power of average Americans, Doge has the potential to put money back in their pockets like nothing else.
Doge has been trading around six cents for the past couple weeks.
When the "Doge to a dollar" meme comes to fruition, buyers now will roughly 15x their investment, offering the possibility of an economic lifeline where none existed before.
The last time there was talk about giving regular folks economic stimulus in 2020, it took Congress months before coming to an agreement.
If the next Dogecoin Rise is anything like the last one, people across the world could multiply their wealth overnight.
For regular folks, Dogecoin represents hope for starting their own business, getting out from under debt, spending more time with family, pursuing their dreams, or simply offsetting the rising cost of living.
Contrary to the claim that Doge is a get-rich-quick pyramid scheme, it actually has potential to alleviate economic duress at a time when screws are being tightened on people like never before.
With the US dollar hemorrhaging value, has the time finally arrived for a much-wow upgrade?
Dogecoin is hope
Dogecoin, and crypto in general, has the potential to upend the financial status quo.
Elon's companies are similarly disruptive, threatening to render the fossil fuel industry obsolete, not to mention the global petrodollar system it props up.
His enemies would leap at the chance to sink Tesla, SpaceX, and Doge in one swoop, and have been trying to depict him as using Dogecoin to enrich himself.
In reality, Doge has the power to function as a form of private stimulus during a time of growing economic uncertainty.
Reading between the lines, Elon's support for Doge is stronger than ever—and that's a good thing!
Dogey Treats: News Bites
Fallout from crypto contagion continues. Voyager is reported to have $600 million dollars worth of exposure to 3 Arrows Capital, and received a $500 million dollar line of credit from FTX to stay solvent. BlockFi is on the verge of accepting an emergency loan from either FTX or Morgan Creek Digital. Goldman Sachs is raising $2 billion dollars to buy Celsius's network assets if they go bankrupt.
Elon said that, once he finishes the Twitter acquisition, he will drive the product, but is not concerned about having the title of CEO. The CEO of Qatar Investment Authority said of Elon's Twitter bid, "We believe in Elon's leadership, and that's why we have committed on this transaction."
In Big3 action, the Aliens fell to Joe Johnson's Triplets.
Elon took a sustained break from Twitter this week, but gave an interview to journalist Johnna Crider, who reported he is doing well.
Cristiano Ronaldo partnered with crypto exchange Binance to launch a line of NFTs.
MyDoge Social Wallet Dogeverse released new policies.
Citadel is moving its headquarters from Chicago to Miami.
Louisiana passed a law making it legal for banks to custody crypto.
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Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Always assume that the author of the article is actively trading and that the opinions expressed may be biased towards the author’s holdings. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
At the time of publication, Dogecoin is around $0.07 per coin.