Elon Musk and the meme coins. On Twitter, the Tesla CEO mentioned on Friday that he would get a Shiba Inu dog. This promptly sent the Dogecoin imitator Shiba Inu (SHIB) up 17%, fuelling speculation that Musk might have a new favourite meme currency. In the meantime, Musk has spoken out again, but expressed his support for DOGE. And this on his birthday of all days - because the native South African turns 50 today.
Musk reveals: This is the name of his dog
Investors in self-proclaimed "dogecoin" killer Shiba Inu (SHIB) saw the coin suddenly soar 17% on Friday amid rather weak crypto markets. Earlier, Tesla CEO Elon Musk had written on Twitter:
Once again, it has been shown that it only takes one keyword from the entrepreneur to move the price of a coin. For example, Musk had tweeted about Dogecoin several times since the beginning of the year - with massive effects on the price. This time, however, Shiba Inu shot up. Many traders and small investors invested in SHIB for a short time after Musk's statement - probably in the expectation that Musk would continue to tweet about the meme coin and drive the price up accordingly. But things turned out differently.
In the early hours of this morning, Musk tweeted again - but again in favour of Dogecoin. This briefly pushed the DOGE price up 5% within 24 hours.
Dogecoin developer Ross Nicoll had linked to a post on the online forum Reddit on Twitter about the planned Dogecoin upgrade. Although Elon Musk only commented on Nicoll's post with the words "important to support" - the Tesla CEO's renewed endorsement immediately gave the recently very embattled DOGE price a boost of around 5%. A small birthday pump.
The Dogecoin fee change proposal is up!
DOGE as "Currency of the Earth
The post details the upgrade proposal. Dogecoin developer Patrick Lodder writes in the Reddit thread:
"This proposal to all Dogecoin stakeholders proposes to reduce the average fees for standard transactions on the Dogecoin chain by 100x, split full control over all aspects of fees between miners and node operators, rely less on core development, and bring back a functional (small) free transaction space that incentivises keeping the network healthy."
Musk had already stressed in the past that it was important to reduce transaction fees and improve speed with Dogecoin in order to make DOGE the "currency of the earth". According to the improvement proposal, DOGE is currently almost five times more expensive to use than Litecoin. It therefore makes sense to "reduce fees by at least 50 times to remain competitive".