MARKET PEOPLE

Elon Musk returns to Crypto Twitter, drives Shiba Inu coin down from its previous high, emphasizes no affiliation with the Dogecoin Foundation

2021/10/25

Tesla CEO Elon Musk, who has been absent from Crypto Twitter for a long time, has returned and been actively posting related tweets recently. On 10/24, as Shiba Inu coin reached an all-time high, he poured cold water on it by claiming he does not hold any Shiba Inu coin, while showing support for the meme coin "Dogecoin" based on the original Shiba Inu.

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Shiba Inu Coin Challenges Previous Highs, Trading Volume Surges to Top Three

The Shiba Inu coin (SHIB), also known as the "Shiba Inu" in the cryptocurrency community, started to rise in the so-called October bull market, with a surge of over 300% in the first half of October. By October 24th, the monthly increase had even exceeded 500%.

Furthermore, the daily trading volume of Shiba Inu coin surged to third place at $16.3 billion, surpassing Ethereum's $15.1 billion.

Musk: Dogecoin is Like People's Currency

In the early morning of October 25th, Musk expressed a series of opinions on Shiba Inu coin, seemingly indirectly causing the momentum of Shiba Inu coin to temporarily come to a halt.

American investor Glauber Contessoto, known as a millionaire in Dogecoin holdings, retweeted an article titled "Survey: Nearly One-Third of Cryptocurrency Holders Own Dogecoin," stating that Dogecoin is the real people's demand. Musk then responded:

I've talked to many people on the Tesla production line and building rockets at SpaceX, many of them hold Dogecoin, they are not financial or Silicon Valley experts, and that's why I decided to support Dogecoin. It feels like the people's cryptocurrency.

Confirmed Not Holding, Shiba Inu Coin Dips

About three hours later, the Shiba Inu coin community proactively tagged Musk to inquire whether he held SHIB. Musk responded that he did not hold any SHIB, but had a token named FLOKI after his own Shiba Inu. He said:

For the record, I only have some Bitcoin, Ethereum, and Dogecoin out of curiosity. As I emphasized before, don't put all your assets into cryptocurrencies! The real value lies in creating products and providing services for humanity, which has nothing to do with any form of currency.

Out of curiosity, I acquired some ascii hash strings called “Bitcoin, Ethereum & Doge”. That’s it.
As I’ve said before, don’t bet the farm on crypto! True value is building products & providing services to your fellow human beings, not money in any form.
— Elon Musk (@elonmusk) October 24, 2021

No Affiliation with Dogecoin Foundation

In mid-August, it was reported that the Dogecoin Foundation, after years of silence, was revived, with Jared Birchall, legal advisor to Musk and co-founder of Neuralink, listed as a board advisory member.

Supporter of Dogecoin, Mishaboar, mentioned that while Jared Birchall is listed as a board advisory member, he does not have voting rights, indicating that the Dogecoin Foundation operates as a completely independent entity.

However, Musk directly contradicted this by stating that neither Jared Birchall, himself, nor anyone he knows has any association with the foundation.

Optimizing the Base Chain, Layer Two as Backup

Regarding the vision of Dogecoin, Musk's views remain the same as in May, believing that the base chain must be optimized for block time, block size, and fees. As for being a medium of exchange, the second layer is the simplest solution, emphasizing that if significant improvements in low bandwidth and high latency can be sustained, the need for a second layer solution can be discarded.