Elon Musk and Snoop Dogg shoot Dogecoin to new all-time high

Dogecoin: Elon Musk and Snoop Dogg set new DOGE record

Dogecoin is pumping – again. And once again Elon Musk has his fingers, or thumbs, in the game. Because the Tesla boss has once again made waves with flirtatious DOGE tweets. Waves that rap legend Snoop Dogg and KISS guitarist Gene Simmons are now also surfing.

After Elon Musk repeatedly posted tweets about DOGE and received backing from other celebrities, the Dogecoin price set a new all-time high of 0.08 US dollars on 7 February. At press time, the fun coin is Bitcoin Era trading at US$0.72 – almost 92 percent higher than a week ago.

Meanwhile, DOGE has been making an appearance on other prominent Twitter timelines. KISS guitarist Gene Simmons, for example, recently joined the ranks of the Dogecoin Twitterati.

I bought Dogecoin… six figures

I bought Dogecoin…six figures
– Gene Simmons (@genesimmons) February 5, 2021

Also making big waves was a tweet from Snoop Dogg, which now tops the rap icon’s timeline as a pinned tweet.

– Snoop Dogg (@SnoopDogg) February 6, 2021

With such celebrity support, it’s no wonder Dogecoin, which only experienced a massive pump at the end of January, has been propelled to a new all-time high by Musk, Snoop Dogg and Simmons. Whether this is enough to make Dogecoin the world’s currency may well be doubted. Even if, according to a survey initiated by Musk, many people would like it to be:

The future currency of Earth
– Elon Musk (@elonmusk) February 6, 2021

Survey: Musk pumps Bitcoin and Doge

Unlike Musk’s Mars mission, it doesn’t take rocket science to establish a connection between the SpaceX CEO’s Twitter escapades and conspicuous price movements in Bitcoin and Dogecoin. But how close this connection really is was already illuminated in a study by the Blockchain Research Lab at the University of Hamburg on 3 February. The author of the study examined abnormal price developments (CAR, cumulative abnormal return) in DOGE and BTC after tweets by Elon Musk. The result: Especially in the first hours after the mention, the corresponding prices shot up.

Musk’s Twitter bio change to #bitcoin resulted in a significant CAR of 6.31% over 30 minutes, which increased to 13.19% over an hour and with 18.99% over a 7 hour period. Musk’s tweet „One word: Doge“ resulted in a significant CAR of 8.17% over a five-minute time window, peaking at 17.31% over the one-hour period
Lennart Ante: How Elon Musk’s Twitter activity moves cryptocurrency markets (Working Paper).

In the concluding remarks, the author argues for the connection between social media influencers and the prices of Bitcoin and Co. to be considered more thoroughly in research. In addition, the results of the study raise the question of under what conditions persons of public interest should comment on certain cryptocurrencies at all.