Dogecoin (DOGE) recently found itself entangled in the latest developments in the financial world. As the digital currency followed the broader market’s downward trend, news broke that the US Securities and Exchange Commission (SEC) had taken legal action against Binance and Coinbase.
This unexpected turn of events drew the attention of none other than Elon Musk, the influential entrepreneur and self-proclaimed “Dogefather.”
With Dogecoin’s value taking a hit and the SEC’s lawsuit causing ripples across the crypto community, Musk couldn’t resist responding to the unfolding situation.
— Pierre Rochard (@BitcoinPierre) June 6, 2023
Elon Musk Again Champions Dogecoin
As news of the SEC’s lawsuit against Coinbase broke, Pierre Rochard, the vice president of research at Riot Platforms, on Twitter emphasized the importance of refocusing the exchange’s attention on Bitcoin. Rochard’s suggestion aligns with his belief in Bitcoin’s resilience and long-term potential as the leading cryptocurrency.
Supporting Rochard’s viewpoint, Jack Dorsey, the founder of Twitter and a well-known advocate of Bitcoin, also weighed in on the matter. Dorsey expressed his support for prioritizing Bitcoin amidst regulatory challenges, emphasizing its robustness and significance in the crypto landscape.
DOGE market cap currently at $9.4 billion. Chart: TradingView.com
Musk, renowned for his interest in cryptocurrencies and previous endorsements of Dogecoin, wasted no time in responding to Dorsey’s pro-Bitcoin stance. With his characteristic brevity and wit, Musk took to Twitter and tweeted a concise yet attention-grabbing statement.
In his tweet, he simply wrote “DOGE ftw,” using the abbreviation “ftw” to signify “for the win.”
Dogecoin’s Reaction To Regulatory Pressure
As news of the SEC’s lawsuit against Binance, a leading cryptocurrency exchange, spread, Dogecoin experienced a decline in line with the broader market. However, the market’s expectation that Musk’s tweets could rapidly boost the token’s price has not been fulfilled in the current scenario.
Despite its strong association with Musk’s endorsements, Dogecoin is currently trading at $0.067970 at CoinGecko, reflecting a 5.0% decrease over the past week.
While Dogecoin has not been named among the tokens considered securities by the SEC, the prevailing regulatory pressure and negative sentiment in the industry have contributed to its generally low price. The lack of clarity and uncertainty surrounding the regulatory landscape has dampened market sentiments, affecting the value of various cryptocurrencies, including Dogecoin.
While the SEC has not designated Dogecoin as a security, the impact of regulatory pressure and market trends has kept the altcoin’s price relatively low. As the industry navigates this challenging period, the future of Dogecoin remains uncertain, and investors eagerly await any potential developments or further endorsements from Musk that could influence its price trajectory.
Featured image from REUTERS/Dado Ruvic/Illustration