Ever since the world’s richest person, Elon Musk, rebranded Twitter to X and then added the Dogecoin symbol ‘Ð’ to his profile pictures, the crypto market has been rushing to catch the resulting surge.
Crypto tracking tools show that investors who bet on Doge shorting lost 10% on their investments as the memecoin temporarily surges.
However, analysts advise investors to stay wary of the coin’s sudden surge as its future seems unclear.
It’s no secret that Tesla and SpaceX CEO Elon Musk is a big fan of Dogecoin. Earlier this year, after taking over Twitter, Elon temporarily changed the Twitter logo to the Dogecoin logo, causing the memecoin to surge in price. The same incident caused legal parties to file a lawsuit against him, claiming market manipulation.
Now, Elon announced Twitter’s rebranding to X, adding the social media platform to his X Corp, which includes Tesla and SpaceX.
Following the announcement, Musk added the platform’s new symbol 𝕏 alongside Ð, Dogecoin’s symbol in the location section on his profile.
However, there’s more to the story: Elon has been famous for helping certain crypto tokens rise in value temporarily before they sink to the ground.
A prime example of the incident is when Elon purchased $1.5 billion in Bitcoin in 2021, causing the token to surge in price, while promoting the potential of Bitcoin as a payment solution, including for Tesla’s products.
Mere months later, Musk and Tesla sold the majority of their Bitcoin pile, resulting in a major market dump that sent the token’s value to a new low. The tech CEO even started talking about the environmental impact of using Bitcoin to justify his sudden change of mind.
CCN analysts cite several reasons why investors should be wary of investing in Dogecoin following Musk’s recent action around the coin.