If major Dogecoin holders sell most of their coins, it will get my full support.”
That was Tesla Chief Executive Elon Musk in a tweet on Sunday. “Too much concentration is the only real issue imo,” he added. That was followed a few hours later by this tweet: “I will literally pay actual $ if they just void their accounts.”
The cryptocurrency, which was originally created in 2013 just to satirize the hype around the rise of questionable cryptocurrencies at the time, fell about 14% at one point on Monday, then rebounded to trade up about 3% to 0.058 cents. From its Feb. 7 record high of 0.087, dogecoin is down about 33%, according to data from CoinDesk. On Sunday, it was already off more than 20% from that high, a drop that meets a commonly used Wall Street definition of a bear market.
But dogecoin is still up about 900% year-to-date, benefiting from a general surge in cryptocurrencies, and after a frenzy for Reddit-fueled stocks last month spilled into the sector. Even Billy Markus, co-founder and creator of the volatile cryptocurrency, has said its stratospheric rise is “not something I can comprehend.”
Tesla, meanwhile, recently revealed that it invested $1.5 billion in the No. 1 cryptocurrency, bitcoin BTCUSD, -0.65%, and could, in future, begin to accept it as payment for its products. Bitcoin skirted close to a record $50,000 over the weekend as some traditional Wall Street companies waded into cryptocurrencies.
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While Musk may appear to be trying to cool the fervor around dogecoin, he’s credited by some for helping light a fire under the cryptocurrency after a series of seemingly bullish tweets, like this one from late December: “One word: Doge.”
In early February, he inspired another hefty rally with a spate of tweets in which he referred to dogecoin as “the people’s crypto,” and shared a picture of a rocket to the moon with one word: Doge. Celebrities such as Gene Simmons of the rock band Kiss have also voiced support for Doge.