Musk's Twitter Acquisition Gave Wings to 'Mim Coin'

Dogecoin Daily Trading Volume Surges 10x
Shiba Inu Trading Volume Also Up 3.8x

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Interest in Dogecoin is heating up as Elon Musk, CEO of Tesla, acquires Twitter. The trading volume surged more than tenfold in just one day.

According to cryptocurrency market tracking site CoinGecko on the 27th, Dogecoin's daily trading volume the previous day was $4.5279 billion (approximately 5.68 trillion KRW). This is more than ten times the $420.6 million (approximately 527.6 billion KRW) recorded on the 25th. Dogecoin's market capitalization also jumped from $17.539 billion to $20.889 billion. Investor expectations have grown as Musk, who showed great interest in Dogecoin last year, acquired Twitter. Dogecoin's market capitalization ranks 12th among global cryptocurrencies.

Dogecoin is a type of meme coin symbolized by the Japanese Shiba Inu dog. In 2021, Musk showed interest in Dogecoin, and every time he posted related tweets, a craze ensued, causing the price to soar. The price, which was only 0.47 cents at the beginning of last year, surged to 68.18 cents in May. Interest waned afterward, and this year the price hovered between 12 and 18 cents, but the news of Musk's Twitter acquisition yesterday has drawn attention again. However, the price of Dogecoin, which momentarily rose by up to 30% immediately after the acquisition, fell 12% to 13.82 cents as of 9:10 a.m. that day, as the overall cryptocurrency market showed weakness with Bitcoin prices dropping more than 6%.

The trading volume of Shiba Inu, another type of meme coin, also increased significantly following Musk's Twitter acquisition news. The daily trading volume, which was $332.199 million on the 25th, increased about 3.8 times the next day. As trading in Dogecoin increased, it appears to have attracted investors' attention as well. Shiba Inu, a derivative and competitor of Dogecoin, was created in August 2020.

However, past cases show that when meme coins gain people's attention, so-called 'rug pull' incidents frequently occur. Last year, several derivative meme coins appeared riding on Dogecoin's popularity. Among them, Jin Dogecoin saw its developer sell 15% of the total supply at once, causing the price to plummet nearly 97%. Additionally, Squid Coin, based on the Netflix drama 'Squid Game,' traded up to a peak price of 3.4 million KRW, but when the developers abandoned the project and cashed out, it plunged 99.99%.

This content was produced with the assistance of AI translation services.