Dogecoin is having a moment. The cryptocurrency that was designed as a joke saw its value surge 200% in early trading Friday. And for the week, it’s up more than 570%.
Despite reports that Reddit’s r/WallStreetBets was part of the reason behind the spike, that seems unlikely. Instead, it’s Elon Musk who can once again take credit.
The creator of r/WallStreetBets today banned all discussion of cryptocurrencies after seeing reports that it was relaxing its existing rule forbidding posts about digital currency. It was a stark reminder that the group prefers to keep its focus on stocks, with GameStop remaining a favorite.
Musk, though, has been having all sorts of fun on Twitter with Doge images and memes, which inevitably prompt a run on Dogecoin. This follows a post he made Wednesday morning (and has since deleted) that caused a surge earlier this week.
Yesterday, Musk posted an image he labeled “Doge Barking at the Moon.” (“To the moon” is a rallying cry for the r/WallStreetBets crowd for GameStop stock.)
Just 24 hours ago, Dogecoin was trading for about 13¢, which was in line with Wednesday’s surge. Around 8 p.m. last night, the run-up began, and by 9:45 a.m. ET, Dogecoin hit 43¢. (It has since fallen into the 37¢ range.)
It’s might be hard to be impressed by those figures, since Bitcoin is trading for tens of thousands of dollars. But consider what Dogecoin was designed to be.
The crypto has been around for eight years, and for most of that time had a maximum value of half a cent. Ten thousand new Dogecoins are programmed to be issued every minute for the rest of eternity, meaning the value will never hold. It’s a cryptocurrency that’s meant to always get cheaper. Even the creator of the coin is flummoxed by its recent rise.
At least one person or company might be making real money on the Dogecoin surge, though. In February, word escaped that an unknown entity currently holds roughly 28% of the Dogecoin in circulation—some 38.6 billion Dogecoin. After today’s high point, that was worth nearly $5.6 billion.
Year to date, Dogecoin is up an astonishing 7,908%.
