WEB DESK: Elon Musk’s recent announcement that SpaceX would use Dogecoin to fund a lunar mission did not drive the expected surge in the cryptocurrency’s value.
Despite Musk’s tweet promoting Dogecoin as the “first meme in space” and the first cryptocurrency to reach the moon, the price of Dogecoin fell by 1.1 per cent to $0.53 on Monday.
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The Canadian company Geometric Energy Corporation revealed the “DOGE-1 Mission to the Moon,” which involves sending a 40-kg satellite aboard a Falcon 9 rocket in early 2022.
Geometric Energy’s CEO said that this mission marks a “significant step” in establishing Dogecoin as a unit of account for lunar business.
Elon Musk’s tweet, which humorously stated, “To the mooooonnn!!,” was expected to propel Dogecoin’s value upward.
Contrary to these expectations, Dogecoin’s value dropped nearly 25 per cent after Musk mentioned the cryptocurrency on Saturday Night Live (SNL), falling from $0.69 to $0.48.
In spite of recent declines, Dogecoin has seen an extraordinary increase of around 400 per centin the past month and an incredible 14,000 per cent rise since the beginning of the year.
Once created as a lighthearted joke in 2013, Dogecoin now garners significant attention from both celebrities and investors, with notable endorsements from figures like rapper Snoop Dogg and Kiss’s Gene Simmons.
The financial sector is also increasingly interested in digital currencies. Last week, Gemini added Dogecoin to its exchange offerings, and eToro integrated it into their trading platform.
Meanwhile, Citigroup is reportedly evaluating the possibility of offering cryptocurrency-related services in response to growing client demand, though no concrete steps have been taken yet.
In contrast to the erratic behavior of Dogecoin, Ethereum achieved a new all-time high of $4,105. The rise was attributed to increased institutional interest and Ethereum’s comparatively lower price versus Bitcoin.
The rise also has caused Bitcoin’s market share to decrease from roughly 60 per cent to 45 per cent over the past month.
Despite the general optimism surrounding cryptocurrencies, regulatory challenges remain. Cryptocurrencies have been criticised as having no “intrinsic value” and many financial experts caution investors about potential losses.
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The biggest critcism leveled against cryptocurrencies is its volatile price swings, such as Dogecoin’s steep decline following Musk’s SNL appearance. Most experts recommend a small investments in cryptocurrencies at most.