Dogecoin and D.O.G.E – Elon Musk’s Billionaire Crypto Experiment

Originally launched as a parody of cryptographic speculation, Dogecoin has since become the kind of speculative asset that he was supposed to make fun – largely due to the influence of Elon Musk. His activity on social networks and his public mentions played a central and continuous role in the formation of the Doge trajectory.

Beincrypto spoke with Erwin Voloder, head of the European Blockchain Association policy, to discuss how Musk scrambled the boundaries between parody and promotion, leading people to attribute real value to a meme and generate ethical concerns along the way.

The genesis of Dogecoin

Towards the end of 2013, the software engineers Billy Markus and Jackson Palmer united their forces to create Dogecoin, the first piece of memes in the history of the crypto. Its main objective was to serve as a light parody of chaotic media threw.

Born from the meme Internet “Doge”, which presented in good place a Shiba Inu, the same piece was designed as a humorous blow to the often illogical nature of cryptographic speculation.

Despite its satirical origins, Dogecoin quickly acquired a dedicated online suite – so much so that even Tesla CEO, Elon Musk, was attracted.

Today, he is considered a key figure in the community, and Dogecoin, unlike his initial philosophy, has become a speculative asset.

“Musk’s involvement has transformed the Dogecoin of a satirical internet token into a speculative asset class by giving it perceived legitimacy and entertainment value. His tweets and appearances have transformed Dogecoin into a cultural product rather than a real performance art.

In addition to symbolic approvals, musk has exerted a concrete influence. An excellent example is Tesla’s decision in early 2022 to accept Dogecoin for certain goods, considerably strengthening its position and indicating its practical potential.

Musk also did not hesitate to use social media to transmit his love for Dogecoin.

How do Musk tweets have an impact on the Dogecoin market?

Over the years, Elon Musk, a prolific Twitter user before even buying the platformhas shared many articles referring to Dogecoin. Each of these tweets has considerably had an impact on the visibility of the memes piece and price performance.

When Musk referred to Dogecoin in a tweet in April 2019 as its favorite cryptocurrency, the market has gone crazy. In two days, the price of the part went from $ 0.002 on April 1 to $ 0.004.

Two years later, articles X of Musk declaring “Dogecoin is the people crypto” sparked a wave of night negotiation volume of more than 50%.

Soon, retail investors began to follow Musk’s approvals. But they were not all butterflies and roses. The unpredictable statements of musks also came with extreme volatility.

“Musk scrambled the line between parody and promotion, which led people to attribute real value to a meme. Without him, he may have remained a niche joke, but with him, it became a symbol of speculative absurdity,” said Volade.

When Musk called Dogecoin ‘A Hustle’ Le Saturday Night Live in May 2021, the play lost more than a third of its price in a few hours.

“Dogecoin does not have a clear roadmap, no underlying performance or utility, and a limited development activity, which means that its evaluation is particularly focused on feeling. In such an environment, the actions of a single individual can lead or destroy the perception of the market, in particular when this individual is one of the most following and richer people in the world,” he added.

Then, in January 2025, President Trump appointed Musk as head of a newly created agency responsible for reducing federal spending.

Musk called it the government’s Ministry of Effectiveness, or Doge to be short. The name was intentional and the internet broke accordingly.

Doge and the price of the price: what is the correlation?

President Trump launched the DOGE department by decree on the first day of work. After Doge launched its official government website, the Dogecoin price jumped 13% in 15 minutes, breaking its previous downward trend.

However, since the official creation of the Government Ministry of Efficiency, the Doge Prize has been free. Although estimated at $ 0.36 on January 20, its price has since fallen at $ 0.15 today.

The results of a recent Finbold report also revealed that Musk could now have the opposite effect on the value and the feeling of dogecoin.

According to data, the number of MADECOINNEDAIRNAIRAL MADECOIN addresses plunged more than 41% between January 21 and March 31. In just over two months, cryptocurrency decreased 964 addresses.

In particular, the report indicated a massive proportional drop in the number of the richest Dogecoin addresses. The number of addresses with $ 1 million to $ 9.99 million decreased by 40.21% in T1 2025.

Most importantly, the number of addresses with more than $ 10 million dropped by 47%, from 400 to 212.

In short, the Dogecoin whales throw the token.

“Musk’s influence remains a key variable in Dogecoin’s assessment, and the moment of the decline in high -value addresses aligns closely with its DOGE ad, which suggests a correlation. However, attributing all the inversion to a Musk neglects wider macro-factors such as growing interest rates, strong crypto-pum regulations and the outcome after retail after 2021, “explained Voloder.

Despite the difficulty of assessing the precise impact of the leadership of Elon Musk’s Doge on Dogecoin’s performance, its significant influence on cryptocurrency has become obvious.

Ethical considerations accompanying the influence of musk also became difficult to ignore.

The ethical concerns of the influence of a billionaire

According to Voloder, the Dogecoin affair illustrates the dangers of parasocial investment, a behavior in which people wrongly attribute credibility to famous personalities according to their status of celebrity or their charisma.

It also shows the harmful effects of non -critical dependence on endorsements, potentially resulting in substantial financial losses for retail investors.

The ethics of a billionaire influencing a volatile market such as cryptocurrency also has important complexities.

“On the one hand, Musk has the right to express personal opinions and to participate in public discourse, including around assets like Dogecoin. Other beincrypto.

Given the unregulated nature of the cryptocurrency industry, it is currently difficult to determine to what extent Musk’s actions can be responsible.

Musk’s influence is market manipulation?

Although presented as personal opinions, Musk tweets obviously affect Dogecoin prices, creating a legal gray area concerning the potential market manipulation under American securities and raw materials.

“Under the rules of the dry, market manipulation involves intentional conduct designed to deceive or defraud investors by controlling or artificially affecting market prices. Although Dogecoin is not officially considered to be a guarantee, and therefore apart from the traditional delivery of the dry, the CFTC could still examine it under its anti-manipulation powers for the goods, “said Voloder.

The Dogecoin affair is not the first time that a high -level figure has influenced the markets in a manipulative manner, but not explicitly illegal.

Voloder highlighted two cases at different times in the 20th century: when the eminent banker JP Morgan led the markets during the 1907 panic and investor George Soros broke the Bank of England in 1992.

Although their maneuvers are technically legal, they managed to influence market results. However, it was the 20th century, and their impact was proportionally much smaller.

“The difference today is that social media offers an instantaneous scope to millions of investors, by amplifying the potential impact. Thus, even if Musk tweets are formulated as personal reflections, their predictable effect on the price can be considered as a form of market signaling – intentional or not,” said Voladrypto.

In fact, the SEC and legal experts are already debating Elon Musk’s potential influence on Dogecoin’s financial market activities.

A trial of $ 258 billion

Elon Musk is currently facing a collective appeal of $ 258 billion for the management of a Pyramid Dogecoin program.

The trial, tabled in June 2022, says that Musk intentionally promoted Dogecoin through its tweets, public appearances and media interactions, creating a media and stimulating demand.

According to the complainants, this artificial inflation of the Dogecoin price has enabled Musk and its companies to take advantage of while leaving other investors with substantial losses when the price has inevitably decreased.

Due to the unclear legal classification of the dry of cryptocurrencies like Dogecoin, Voloder provides for a difficult route for these complaints before the court. However, the trial indicates increased attention to market manipulation by influential figures.

“However, the prosecution signals have increased legal pressure to define where promotional enthusiasm ends and that financial misconduct begins. If regulators or courts decide to knowingly manipulate the market or investors induced in error, it could face civil penalties or be forced to regulations. lines, ”explained Voloder.

Musk’s influence on Dogecoin continues tirelessly and long -term effects on the Dogecoin community remain a subject of debate.

The rapid decrease of 40% of the addresses of the Dogecoin whale within two months raised questions about the strength and future resilience of the memes piece.

However, the fundamental force of Doge remains intact – it is the community.

“While the initial media threw has faded, Dogecoin always retains a faithful basis of enthusiasts, many of which appreciate its culture focused on memes, low transaction costs and the emblematic brand. But the large speculative crowd which initially led its [all-time high] Has largely left the ground in the absence of sustained bullish accounts or significant technological upgrades, ”concluded Voloder.

In the future, traders will monitor whether the “cult” of the worship of Dogecoin finally decreases or if a strong community will maintain the “OG coins”.