What started as a joke, a digital wink at the absurdity of crypto, has turned into a circus led by none other than Elon Musk. Dogecoin, the meme coin that was supposed to mock speculation, has become its poster child, thanks to Musk’s tweets, endorsements, and a flair for the dramatic.
Erwin Voloder, Head of Policy at the European Blockchain Association, sat down with BeInCrypto to unpack how Musk turned a meme into a market mover, blurring the lines between satire and speculation, and leaving a trail of ethical questions in his wake.
The Birth of a Meme Coin
Back in 2013, Billy Markus and Jackson Palmer, two software engineers with a sense of humor, created Dogecoin. It was meant to be a parody of the crypto craze, a digital middle finger to the madness of Bitcoin and its ilk. The Shiba Inu from the “Doge” meme became its mascot, and the internet laughed along.
But then, Elon Musk showed up. The billionaire, known for his love of chaos and memes, took a shine to Dogecoin. What was once a joke became a serious—well, sort of—speculative asset. The irony wasn’t lost on anyone.
“Musk turned Dogecoin from a joke into a juggernaut. His tweets and antics gave it legitimacy, or at least the illusion of it. A coin created to mock irrational investing became the epitome of irrational investing. You can’t make this stuff up,” Voloder said.
Musk didn’t stop at tweets. In early 2022, Tesla started accepting Dogecoin for merchandise, giving it a real-world use case. The internet cheered, and the price soared. But with Musk, there’s always a twist.
The Musk Effect: Tweets, Volatility, and Chaos
Musk’s tweets have been a rollercoaster for Dogecoin. In April 2019, he called it his “favorite cryptocurrency,” and the price doubled in two days. Two years later, he declared it “the people’s crypto,” and trading volume surged by 50%. But when he called it a “hustle” on Saturday Night Live in May 2021, the price tanked by a third.
“Dogecoin might be my fav cryptocurrency. It’s pretty cool.” — Elon Musk (@elonmusk) April 2, 2019
Voloder summed it up: “Musk turned a meme into a market mover. His tweets are like a financial weather vane—unpredictable and often stormy.”
Then came the pièce de résistance: in January 2025, President Trump appointed Musk to head the Department of Government Efficiency, or D.O.G.E. The internet exploded, and Dogecoin’s price surged—briefly. Since then, it’s been in freefall.
D.O.G.E. and the Downward Spiral
When D.O.G.E. launched, Dogecoin’s price jumped 13% in 15 minutes. But the excitement was short-lived. Since then, the price has plummeted from $0.36 to $0.15. The number of Dogecoin millionaire addresses has dropped by 41%, and the whales are bailing.
“Musk’s influence is undeniable, but it’s not the only factor. Rising interest rates, tighter regulations, and fading retail enthusiasm are also at play,” Voloder explained.
Still, Musk’s role in Dogecoin’s rise and fall is hard to ignore. And it’s raising some serious ethical questions.
The Ethics of a Billionaire’s Influence
Voloder pointed out the dangers of parasocial investing, where people blindly follow celebrities like Musk. “When a billionaire’s tweets can make or break a market, there’s a responsibility to tread carefully. But in the Wild West of crypto, that’s easier said than done.”
Musk’s influence has also sparked legal debates. Is he manipulating the market? The SEC and CFTC are keeping a close eye on him, and a $258 billion class-action lawsuit claims he ran a Dogecoin pyramid scheme.
“The lawsuit may be a long shot, but it’s a sign that regulators and investors are waking up to the risks of unchecked influence in crypto,” Voloder said.
Despite the drama, Dogecoin’s community remains resilient. Its loyal fans, drawn to its meme culture and low fees, are keeping it alive. But whether it can survive without Musk’s antics is anyone’s guess.
In the end, Dogecoin is more than a cryptocurrency—it’s a cultural phenomenon, a cautionary tale, and a testament to the power of memes. And as long as Elon Musk is around, the show will go on. 🐕💸
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2025-04-12 13:13