Dogecoin falls hard after short-lived Elon Musk buy pump

It’s no secret that Elon Musk loves Dogecoin, and Dogecoin typically loves him back.

The meme-inspired cryptocurrency jumped as much as 27% on Monday after Twitter announced its board of directors accepted Musk’s $44 billion buyout offer. But Dogecoin has since lost much of those gains and is down 11% in 24 hours, according to CoinGecko.

Dogecoin saw a high of 16.5 cents on Monday during its pop but dropped as low as 13 cents on Tuesday. It’s currently trading at about 14 cents.

Though Musk’s effect has seemingly worn off, the sync between the Tesla CEO and Dogecoin isn’t new. 

The cryptocurrency’s price also jumped when it was revealed that Musk took a 9.2% stake in Twitter in early April.

Dogecoin was created as a joke in 2013 by developers Billy Markus and Jackson Palmer. Based on the “Doge” meme, which portrays a Shiba Inu dog. It was “created for sillies,” Markus wrote in a 2021 Reddit post. “I threw it together, without any expectation or plan. It took about 3 hours to make.”

Musk took a liking to Dogecoin years ago and started to tweet about the cryptocurrency in 2019. 

He’s claimed to have worked with Dogecoin developers on bettering its network and has attributed his support of it to feeling that it’s the “people’s crypto.”

Since then, Musk has spoken in support of Dogecoin and other cryptocurrencies countless times. In many instances, his tweets have impacted the prices of said cryptocurrencies.

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