Who does not know the name ‘Elon Musk’ and his influence in the crypto space? He was one of the whales in driving the price up for BTC and DOGE during the 2020 crisis. Other than the crypto world, he is known for his electric cars at Tesla and rocket launches at SpaceX.
Many crypto enthusiasts argue his stance on crypto, especially after he acquired Twitter and renamed it ‘X.’ Many people thought Elon might make his own crypto for Tesla or SpaceX. In this platform, ‘X,’ he has cleared his stance of ‘NO’ to crypto tokens for his company. In this post, we are going to deal with the impact of his statement on overall market sentiment and how it impacts the price of DOGE in the coming years.
Elon Musk’s Statement on Crypto Tokens and its Impact
On Friday, on his Twitter handle, Elon clearly mentioned:
“To be super clear, none of my companies will ever create a crypto token!”
Indeed, this revelation has set the internet abuzz! For years, Musk has been an advocate of cryptocurrencies, but what has happened suddenly? A few years back, he mentioned, Tesla had $2 billion invested in Bitcoin, so investors thought he might introduce a unique digital currency for his ventures.
Some crypto enthusiasts mistakenly believed that the new $XAI token was associated with Musk’s AI company, XAI. As a result of media coverage, the value of this digital asset (xAI) increased by 175%. However, it did not last long when Musk revealed his thoughts on altcoins. He once supported Dogecoin for a good cause, so will it impact the DOGE price?
Impact of Elon’s statement on Dogecoin
Elon Musk’s announcement was surprising! In 2021, Musk’s endorsement was a major catalyst for Dogecoin’s rise. It provided more than 1000% returns to the investors. Even in 2023, many Dogecoin (DOGE) holders had faith in the token solely because they believed in Musk’s backing.
Some even acquired Dogecoin after Musk’s acquisition of Twitter. They hoped it would become the platform’s official cryptocurrency. Since Musk’s tweet, Dogecoin’s price has seen some upward movement, but it has underperformed in recent weeks. It has risen 22% in the past month compared to Bitcoin’s 25% rise.
However, many crypto investors do not find any pessimism in Musk’s recent tweet. Experts believe it will make DOGE more relevant if Musk does not launch any new token for his company. The implications of Musk’s declaration are not clear!
Meanwhile, our Dogecoin price prediction suggests bullish momentum in the next couple of years. In 2023, we anticipate the coin may not cross $0.18. However, in 2025, the DOGE will trade between $0.25-$0.39. You should not underestimate the potential of DOGE crossing $0.6 in 2030. Yes, meme coins are volatile, so you need to consider your risk appetite before investing.
We have explained Elon Musk’s view of launching new tokens for his companies, but he did not explicitly ‘reject’ Bitcoin and other altcoins. He may build a position in altcoins and make that coin (maybe DOGE or any other altcoins) his ‘official token’ in the coming years.
Indeed, meme coins do not have intrinsic value due to a lack of use cases, but if you have positions, hold them for the long term. We need to keep an eye on what Elon Musk says and does in the crypto world. Things might change, and he could surprise us all. Stay tuned for updates!