NEW YORK (AP) — Wow, a lot bull market.
Dogecoin, the cryptocurrency whose mascot is a super-cute canine that muses issues like “a lot wow,” has been racing larger in worth since Donald Trump gained the presidential election final week. It obtained one other bump after Trump named Tesla’s Elon Musk as one of many heads of a new “Department of Government Efficiency,” which isn’t a government company however does have the acronym DOGE.
All this is sensible and is perhaps humorous for anybody who’s chronically on-line. For others, right here’s some rationalization about what’s happening:
What’s dogecoin?
It’s a cryptocurrency, whose worth rises and falls towards the U.S. greenback primarily based on nonetheless a lot individuals pays for it.
At first, it was seen as a joke. However over time, dogecoin has amassed a group of followers who’ve periodically despatched its worth hovering. Like different cryptocurrencies, supporters say it may very well be used to purchase and promote issues on the web with out having to fret about a central financial institution or government affecting what number of are in circulation.
How a lot has dogecoin climbed?
One dogecoin — which is pronounced dohj-coin — was price lower than 16 cents simply earlier than Election Day. It’s since greater than doubled to almost 38 cents, as of Wednesday afternoon, in response to CoinDesk. It briefly obtained above 43 cents earlier Wednesday.
Why is it climbing a lot?
Cryptocurrencies have generally been shooting higher since Trump’s election. Bitcoin, which is essentially the most well-known digital forex, has set an all-time excessive above $93,000 after beginning the yr under $43,000.
Pleasure is racing as a result of Trump has embraced crypto and mentioned he desires america to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”
What does Elon Musk should do with any of this?
Musk has turn into considered one of Trump’s shut allies. He’s additionally been probably the most well-known followers of dogecoin. In 2021, Musk performed a character on “Saturday Evening Stay” who glided by the nickname, the “Dogefather.”
In 2022, Musk made extra headlines when he recommended Twitter should perhaps accept dogecoin as payment for subscriptions.
All of it got here to a head Tuesday, when Trump introduced the “Division of Government Efficiency,” which can work from exterior the government to supply the White Home “recommendation and steerage” and can associate with the Workplace of Administration and Funds to “drive massive scale structural reform, and create an entrepreneurial strategy to Government by no means seen earlier than.”
It has the acronym DOGE, which can be the ticker image underneath which dogecoin trades. Musk will lead it, together with former GOP presidential candidate Vivek Ramaswamy.
This all sounds bizarre.
Dogecoin’s historical past is attention-grabbing.
In 2021, on April 20, dogecoin followers tried however did not get its worth above $1 on what they had been calling “Doge Day.”
April 20 has lengthy been an unofficial vacation for marijuana devotees, and Musk himself has referred to 420 a number of instances in his profession, together with his tweet in 2018 saying he had secured funding to take Tesla non-public at a worth of $420 per share.
Is the Shiba Inu whose image is within the meme getting particular treats due to all this?
Sadly, no. The canine, whose actual identify was Kabosu, passed away in Japan earlier this yr at 18 years previous. A lot relaxation, might she have.
