ShibX, Dogecoin, Elon Musk And The Growth Of The Cryptocurrency Asset Class

 | Oct 21, 2021 18:56

This article was written exclusively for Investing.com

  • Musk has his fingers in many tech-based pies
  • He pumps, but he doesn’t dump
  • Dogecoin: a Musk favorite
  • ShibX: meme-crypto derivative of Dogecoin
  • Pack of followers riding the meme sled with Elon Musk driving

The quest for the next explosive cryptocurrency has become a dream for treasure hunters. Nothing ignites a market’s speculative fervor like the chance to turn a single dollar into an over one-million-dollar fortune in a little more than a decade.

Not since the US gold rush in the 1800s have so many fortunes appeared from thin air. Those with the foresight to realize Bitcoin would burst on the scene and change the status quo notions of currencies made fortunes. A $1 investment in Bitcoin in 2010 at five cents was worth $1.14 million at the end of last week, with the leading cryptocurrency trading at the $57,000 per token level. It's worth even more this week even after the token is off its record high price above $66,000, hit on Wednesday.

Cryptocurrencies are the offspring of technological advances, as is the power of social media. The public relations effort in cryptos has only enhanced interest in the asset class. Elon Musk, founder and CEO of Tesla (NASDAQ:TSLA) is a brilliant engineer. The EV company he built has provided wealth for early investors as it became the world’s most valuable automobile manufacturer.

Musk is also the founder of SpaceX and The Boring Company and the world’s wealthiest person currently, with an over $200 billion net worth. As well, he's a big supporter of cryptocurrencies. When asked how regulators should approach the cryptocurrency asset class in a recent interview, he said they should leave it alone. Kara Swisher, a New York Times columnist, asked Elon whether the US government should be involved in regulating the crypto space. Musks' answer: “I would say, do nothing.”

Elon Musk supports the growth of the cryptocurrency asset class. He and his companies hold sizeable long positions in a host of crypto tokens. When he tweets about one token or another, the prices rise and fall based on the tone of his message. Aside from his business interests, Elon Musk is one of the most influential forces in the asset class.

h2 Musk has his fingers in many tech-based pies/h2

Elon Musk is now the world’s wealthiest individual. He recently overtook Jeff Bezos for that honor. His current net worth of well over $200 billion means he has more money than Bill Gates and Warren Buffett combined.

Musk is also an engineer. Aside from founding SpaceX and The Boring Company, he was an early-stage investor, CEO, and product architect for Tesla. He is also a co-founder of Neuralink and Open AI.

Get The App
Join the millions of people who stay on top of global financial markets with Investing.com.
Download Now

He was also instrumental in creating the company that became PayPal (NASDAQ:PYPL). PYPL’s $1.5 billion sale to eBay (NASDAQ:EBAY) in 2002 provided the seed money for the launch of SpaceX that same year.

Clearly, Musk is a busy man. His experience with PayPal and technology in general have given him deep knowledge as well as a pedigree in the payments business. A good bridge as it were to cryptocurrencies which are a revolutionary financial technology and means of exchange that reflect the evolution of finance.

h2 He pumps, but he doesn’t dump/h2

In my view, Musk is a genius and a modern-day DaVinci, a true Renaissance man. But his style is irreverent.

He has taken on short-sellers and nonbelievers in Tesla shares, raising the hackles of the US's Securities and Exchange Commission. He threatened to Joe Rogan’s podcast in a two-hour convesation and video where the pair drank whiskey and smoked marijuana.

Last summer, at the B-word conference, a major cryptocurrency event, Mr. Musk prodded regulators again, expressing his support for digital currencies when he said, “I might pump, but I don’t dump” cryptocurrencies.

h2 Dogecoin: a Musk favorite/h2

While the world focuses on Bitcoin and Ethereum, the crypto pack leaders, Musk has taken a particular interest in Dogecoin (DOGE). Along with billionaire Mark Cuban, Musk agrees that Dogecoin is a powerful medium of exchange.

In May 2021, he tweeted that he was:

“Working with Doge devs to improve system transaction efficiency.” Potentially promising.”

Each of his Dogecoin tweets seemed to push the price higher. As of Oct. 18, DOGE remains a leader in the asset class. It's now the ninth leading cryptocurrency, trading at around the 25.5 cents level, with a market cap of around $33.5 billion.

Dogecoin was the child of software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a “joke.” But with a $33.5 billion valuation and high-profile support the digital currency no longer something to laugh at.

DOGE is a satirical homage to Bitcoin with a brand. The internet meme centered around the image of a Shiba Inu dog with bad spelling habits, explains “doge” instead of “dog.” In June 2021, Musk tweeted the following:

Obviously, he loves that canine!

A new cryptocurrency, Shibavax (SHIBX) is a knock-off of that original joke that's soared since it came to market on Oct. 10. ShibX mainly took blight because of the popularity of Doge.

h2 ShibX: meme-crypto derivative of Dogecoin/h2

Shibavax’s website outlines the new entry into the cryptocurrency market. ShibX is a reflection token, meaning it takes a 10% reflection fee on each transfer and distributes it to all ShibX holders. Essentially, the token rewards passive investors with dividends.

On Oct. 19, 12,878 cryptocurrencies comprised the asset class. ShibX was the 3092nd token, putting it in the top 24% of all cryptos.