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Andy Hecht covers Commodities and Forex as one of the original contributing analysts at FATRADER. A former senior trader at one of the world’s leading commodities trading houses, Philipp Brothers (now part of Citigroup), Andy has worked and consulted for banks, hedge funds, and commodities producers and consumers around the world for over 35 years.
Crypto War: DOGE Versus Elon Musk
This article was written exclusively for Investing.com
Elon Musk pokes DOGE with a divisive comment
A DOGE creator takes on world’s wealthiest person
DOGE remains in crypto hit parade's top 10
Buying the dip - Only invest spare cash
The Shiba Inu is the adorable canine that is DOGE's mascot and brand. Software engineers Billy Markus and Jackson Palmer created the DOGE payment system as a joke, poking fun at the wild speculation in cryptocurrencies. Little did they realize that another engineer would take the joke to another level.
Elon Musk has been a DOGE cheerleader, and in 2021 he adopted a Shibu Inu, naming the dog “Floki Frunkpuppy”.
Over the past weeks, the love affair between Musk and DOGE has started a war of words with Palmer and a war of the nerds is brewing.
DOGE has not been immune to the bearish price action in Bitcoin, Ethereum and the many other more than 20,000 cryptocurrencies.
As the chart highlights, after reaching a high of 68.48 cents per token in May 2021, the price slid nearly 90% to 7.2 cents on June 27, more than the losses suffered by the two leading cryptos, Bitcoin and Ethereum.
Musk Pokes DOGE With Divisive Comment
Musk seems to be playing favorites regarding DOGE’s founders, Palmer and Markus. While he continues to show support and affection for Markus, he was in full snark mode when he took on Palmer over the past weeks.
In late May, Musk revealed why he and so many others have embraced DOGE, tweeting:
“[Markus’] sense of humor and irreverence is a big part of why people love dogecoin.”
Ignoring Palmer hit a nerve with DOGE’s co-creator.
DOGE Co-creator Takes On World’s Wealthiest Person
Ironically, Palmer became an outspoken crypto critical, saying he thought the asset class “would implode a bit more quickly and people would learn their lesson”. Responding to Musk’s comments, he accused him of being a “grifter”.
Never at a loss for words or tweets, Musk tweeted:
“Palmer always forgets to mention that he never wrote a single line of dogecoin code.”
Markus joined in, adding, “the people after us did exponentially more than either [Palmer] or I did on the code basis.”
The drama will likely continue as Musk may not be done with Palmer after being called a crypto “grifter”.
DOGE Remains In Crypto Hit Parade's Top 10
Despite losing more than 90% of its value since the May 2021 high, DOGE remains in the top 99.95% of the asset class and in the top 10 of the cryptocurrency hierarchy as of June 26.
Buying The Dip: Only Invest Spare Cash
With Musk as the cheerleader-in-chief, the crypto could make a comeback over the coming weeks and months. DOGE’s fortunes are tied to Bitcoin and Ethereum, as a recovery would likely lead to a flurry of interest and buying in Musk’s favorite crypto.
When approaching any members of the volatile asset class, only invest capital you are willing to part with, as the risk of a total loss remains high. Palmer expects DOGE and other cryptos to go bust, but the DOGE creator admits that he is surprised at the staying power of the overall asset class.
Aside from being one of the greatest engineering minds of our time, Musk is a PR master and a money-making machine. When DOGE turns around, expect him to support the crypto with a barrage of tweets heralding the return of the Shiba Inu branded token. Even during the current crypto bear market, Musk continues to support DOGE.