Elon Musk and Dogecoin: How the Billionaire Became the ‘Dogefather’

As Dogecoin makes a comeback off the again of Bitcoin’s surge, some could also be pondering: The place did the asset come from? What’s it for? And what’s Tesla CEO Elon Musk bought to do with it? 

The unique meme coin’s increase largely has the world’s richest man to thank. Musk’s obsession with shitposting helped enhance the coin to a prime 10 cryptocurrency.

It’s been a wacky journey over the previous few years, culminating in Musk’s appointment to guide a authorities company known as DOGE—sure, actually. However we’ll clarify all of it.

2018: What the DOGE?

Dogecoin is the largest and oldest meme coin and the second-biggest proof-of-work cryptocurrency. It was created in 2013 as a joke by builders Billy Markus and Jackson Palmer. 

The concept was to poke enjoyable on the enormous variety of altcoins and crypto initiatives coming into the market following Bitcoin’s fast ascent, and the coin loved relative obscurity and a low worth throughout its early years. 

However then alongside got here Musk. The eccentric billionaire requested Palmer in a 2018 tweet to assist with the Twitter bot downside. Scammers had created quite a lot of faux high-profile accounts, together with Musk’s, with a view to push crypto cons. The scams sometimes posted faux Ethereum giveaways. 

It was the primary actual curiosity Musk had proven in Dogecoin.

2019: The pump begins

Musk began to pump Dogecoin the following 12 months. “Dogecoin may be my fav cryptocurrency,” he wrote in April 2019, in response to a screenshot of a ballot from the official Dogecoin account asking who needs to be the cryptocurrency’s CEO. “It’s fairly cool.”

The put up can be the primary of many to trigger the asset’s worth to rocket upwards. Quickly after Musk’s first tweet about Dogecoin, the market cap of the coin hit $400 million and crypto trade Huobi listed it.

Musk being Musk, nevertheless, didn’t cease there: He branded himself Dogecoin’s CEO—briefly—on Twitter earlier than persevering with to fireplace out tweets asking if the coin is “actually a legitimate type of foreign money” or posting memes related to the unique dog-coin.

2020/2021: Bull run arrives

Musk continued to pump Dogecoin’s worth right here and there along with his tweets, however issues actually bought began in the course of the 2021 bull run. Main exchanges like Coinbase Professional listed Dogecoin and the asset developed an even bigger cult following, to not point out rising mainstream consciousness.

DOGE gained a market cap greater than many corporations within the S&P 500. And builders solely informed Decrypt that that they had secretly been working with Musk since 2019 to make the coin a legitimate cost technique and a greener, cheaper different to Bitcoin.

However issues bought stranger when Musk known as himself the “Dogefather” forward of a “Saturday Evening Reside” skit concerning the cryptocurrency—once more sending the asset’s worth roaring upwards. DOGE would leap to its all-time excessive worth of about $0.73 at the moment.

Musk’s “SNL” look ended up being underwhelming for Doge followers, with the SpaceX boss and his mom’s allusions to the coin finally pushing its worth down. Nonetheless, it continued to carry the unusual world of meme cash to the mainstream.

Later that 12 months, Musk introduced that his rocket firm, SpaceX, would launch a satellite tv for pc to the moon—fully funded by the cryptocurrency.

2022: Tesla/Twitter mania

The Doge mania continued into 2022 when Musk’s automotive firm began accepting Dogecoin for merchandise. 

Dogecoin continued to expertise worth bumps when Musk purchased Twitter and rebranded it to X, hinting that it might additionally turn out to be a funds platform which may, ultimately, combine the O.G. meme coin. 

Issues got here again to chunk Musk later that 12 months, although, when an American man hit the billionaire and Tesla and SpaceX with a $258 billion lawsuit for allegedly pumping Dogecoin—an asset with “no worth in any respect,” in accordance with the unique submitting.

However Musk and his attorneys scored a win this 12 months when a choose sided with them and dismissed the lawsuit, calling the tech entrepreneur’s tweets about Dogecoin “aspirational and puffery,” and noting that “no affordable investor may depend on them.”

2024: Trump, Musk, and DOGE

Dogecoin had a comparatively quiet 2023, however the meme coin has soared in latest months following Musk’s assist of Republican Donald Trump’s marketing campaign for the White Home.

That’s principally as a result of Trump mentioned that Musk would lead a authorities effectivity fee forward of being voted again into the seat of energy; Musk claimed that it might be known as the Division of Governmental Effectivity—an acronym that matches Dogecoin’s ticker. 

At any time when Musk talked about his future political function with the so-called DOGE forward of the election, the value of Dogecoin jumped.

However earlier than Trump’s shock election win, Musk revealed what he has in all probability thought all alongside: that he isn’t significantly or concerned in Bitcoin, Dogecoin, or any cryptocurrency. He simply likes the meme coin.

“I’m really not actively concerned in crypto,” he mentioned at a rally. “I make Dogecoin jokes and stuff as a result of I simply type of like Dogecoin—as a result of it’s bought the most effective humorousness and it has canines and memes, and I really like all these issues.”

Nonetheless, the value of Dogecoin boomed greater, hitting a three-year excessive worth of $0.48—although it is fallen since, as of this writing. Musk has just lately praised Dogecoin’s price of inflation and tweeted out a well-recognized meme picture of a mud cloud with the Doge face engulfing a metropolis.

And President-elect Trump made it official that Musk would lead the administration’s new division, although deliberate co-lead Vivek Ramaswamy bailed in January attributable to different political ambitions.

Trump is even promoting t-shirts displaying himself and Musk alongside Doge-esque art work. And the official DOGE web site briefly featured the acquainted DOGE meme imagery, boosting Dogecoin’s worth within the course of.

With Trump again in workplace, Musk’s DOGE has began aggressively interrogating U.S. authorities spending, grabbing headlines because it accesses probably delicate citizen information whereas upending skilled norms within the course of.

Edited by Andrew Hayward

Editor’s observe: This story was initially printed on November 13, 2024. It was final up to date with new particulars on February 15, 2025.