What Is Driving Dogecoin to the Moon?

Dogecoin price surged 800% in 50 days. Where did it begin? What drove Dogecoin to the Moon? What should you do? 

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

No one knows what’s going on in Elon Musk’s mind. Is he posting Dogecoin memes to kill time, or he is serious? Whatever it is, the fad is driving Dogecoin. To give you some facts, Dogecoin rose 800% in 50 days and now has a market capitalization of US$63.69 billion. This joke has surpassed the market caps of Ford and Volvo, the companies with real business. 

Where it all began 

Let’s start from the very beginning. In 2013, Bitcoin was gaining traction among people. Software engineers Billy Marcus and Jackson Palmer coded Dogecoin in two hours for a good laugh. A joke needs a meme, and that time, the Shiba Inu dog was quite popular. So they purposely misspelled dog to Doge and created Dogecoin. 

The very purpose of Dogecoin is to be used as a meme and not as a mode of payment. Going by the objective of humour, Dogecoin was popularized by memes. The joke spread like wildfire when the second-richest man Elon Musk started tweeting memes. You have seen the power of Twitter before with Donald Trump. Twitter had to ban him for his tweets were causing a disturbance in the force. 

Elon Musk used the power of Twitter and his 55 million followers to amplify the Dogecoin joke. The way meme logic works, others follow suit on anything that is trending. Many Reddit groups, online communities joined the party. Some enthusiasts asked Musk to send Dogecoin to the Moon. 

What is driving Dogecoin to the moon? 

On April 1, Musk tweeted, “SpaceX is going to put a literal Dogecoin on the literal moon.” At first, it looked like a joke. But people literally got excited and spent their paper currency to buy Dogecoin, sending the meme coin up 668% in 20 days.

But that was just the calm before the storm. Many people thought Musk was joking as he tweeted it on April Fool’s Day. But on May 9, Geometric Energy Corporation announced DOGE-1 Mission to the Moon, a space project fully funded by Dogecoin. It will launch DOGE-1 CubeSat into space in SpaceX’s Falcon 9 rocket in the first quarter of 2022. DOGE-1 will obtain “lunar-spatial intelligence” with the help of its cameras and sensors.

SpaceX Vice President of Commercial Sales Tom Ochinero said, “This mission will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce.” This statement sent Dogecoin price to the moon, surging over 1,200% between April 20 and May 9. 

Warren Buffett said Bitcoin is “rat poison squared,” then what will he call Dogecoin? 

Should you become a part of this joke and invest in Dogecoin? 

Musk earns his fortune not from Dogecoin but Tesla, which has an actual business of electric vehicles. His next business will be space travel, which is ambitious but tangible. Dogecoin is something even Musk considers a “hustle” as he said on Saturday Night Live

Take Bitcoin for example. In February, Musk said Tesla might consider BTC as a mode of payment. In May, he backed out because BTC is not eco-friendly. It is not like BTC suddenly became a high carbon emitter. One fine day, he might back out from Doge on similar grounds as even that coin is not eco-friendly. 

This whole crypto fiasco is not something Tesla shareholders like. The stock dipped more than 30% since February when it all began. If you want to play the Doge game, only gamble what you can afford to lose. Otherwise, if you want to invest, put it in tangible business like BlackBerry (TSX:BB)(NYSE:BB). Do you know, this stock has surged 60% in the last 12 months. 

BlackBerry provides cloud-based endpoint security solutions which even governments use. Recently, the Canadian government extended its contract with BlackBerry for Service Canada. Moreover, BlackBerry is looking to leverage its operating system (OS) expertise in cars and make them smart. Just as your mobile got “smarter,” BlackBerry’s QNX and IVY platform will make your car smart. Now that’s a real business with sustainable growth. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla and Twitter. The Motley Fool owns shares of and recommends Tesla and Twitter. The Motley Fool recommends BlackBerry and BlackBerry.

More on Tech Stocks

clock time
Tech Stocks

Now’s the Time to Load Up the TFSA With These 2 Top TSX Stocks

Here are two top TSX stocks that long-term growth investors may not want to give up on, especially at these…

Read more »

shopping online, e-commerce
Tech Stocks

Shopify (TSX:SHOP) Stock Recovers 30% From its 3-Year Lows: Should You Buy?

Shopify stock: Should you buy the dip or wait for more weakness?

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Tech Stocks

What Market Correction? 2 High-Growth Tech Stocks That Are on the Rise

I don’t think it will be long before these two Canadian tech stocks are back to delivering market-crushing returns.

Read more »

grow dividends
Tech Stocks

Why Kinaxis (TSX:KXS) Stock Jumped 14% Last Week

Kinaxis Inc. (TSX:KXS) stock popped over the past week after adding yet another big company to its impressive stable.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

TFSA Investors: Double Your Investments With These 3 Top Growth Stocks

Despite the volatility, I am bullish on these three stocks, given their solid growth potential.

Read more »

Arrow descending on a graph
Tech Stocks

2 Industries That Saw the Worst Decline Last Month

The TSX has been declining at a sharp angle since the beginning of June. And two industries (crypto and cannabis)…

Read more »

Dividend Stocks

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

10-fold growth within a decade is rare but not unheard of. You can capture this growth either by predicting a…

Read more »

Growth from coins
Tech Stocks

Got $1,000? Buy These 3 Under-$20 Growth Stocks to Earn Higher Returns

These under-$20 growth stocks can deliver solid returns in the long run.

Read more »