Elon Musk’s Tweet on Scooby Doo and Doge Garners Attention
Elon Musk has once again tweeted about Dogecoin, causing the price of the meme coin to momentarily spike by 3% and adding $320 million to its market cap. It’s unclear why Musk continues to promote Dogecoin, but one possibility is that he owns a significant amount of the coin and is using his tweets to manipulate its value for personal gain. Bloomberg columnist Matt Levine has speculated that Musk’s motive may simply be to troll people. Regardless of his intent, Musk has the power to significantly impact token prices with just a tweet, unlike news platforms that require days of research to have a similar effect.
The appeal of meme coins like Dogecoin is still puzzling to many. Dogecoin doesn’t have any real use or purpose, and its creators have always considered it to be a joke. Yet people continue to buy it, possibly due to a lack of financial literacy or as a means of gambling in a volatile market. As for the legality of Musk’s actions, manipulating the market for personal profit through tweets is likely not illegal in the case of Dogecoin, as it operates on a different technology from traditional securities like stocks. The SEC would have a difficult time proving that Dogecoin is a security, especially after its recent ruling on Ripple.
In other news, zero-knowledge proof startup RISC Zero has raised $40 million in funding, Societe Generale has received the first license under France’s new crypto regulations, Nasdaq has put its plans for crypto custody on hold, and the discount for shares of Grayscale’s Bitcoin Trust has narrowed as investors grow more confident in the company’s ETF petition.