Snoop Dogg's Dogecoin Investment: Did He Invest?

The price of Dogecoin, a meme-based cryptocurrency, soared to a new all-time high after American rapper Snoop Dogg tweeted a Shiba Inu meme, joining the likes of Elon Musk and Gene Simmons in promoting the cryptocurrency. This begs the question: did Snoop Dogg invest in Dogecoin?

Snoop Dogg's tweet caused Dogecoin's value to soar

On 6 February 2021, Snoop Dogg tweeted a mock "Snoop Doge" Shiba Inu album cover. The price of Dogecoin soared by more than 55% the following day, setting a new all-time high. The cryptocurrency started trading at $0.056 at the beginning of the day and rose to $0.0872 in the afternoon, before settling back to $0.084. This was a 55% increase in the last 24 hours, eclipsing the previous all-time high of $0.078.

Snoop Dogg's tweet was followed by a similar one by Elon Musk, who tweeted a Lion King-inspired picture of himself holding up Gene Simmons, who in turn was holding up Snoop Dogg, who was holding up a Shiba Inu. The trio of tweets was enough to cause Dogecoin to rise four spots on the list of the most valuable cryptocurrencies, racing past bitcoin cash, chainlink, litecoin, and BNB. Dogecoin's market value touched $10.8 billion, and it became the seventh-most valuable cryptocurrency.

Snoop Dogg's tweet was not an isolated incident of a celebrity causing Dogecoin's value to soar. Elon Musk's tweets have also been known to cause spikes in Dogecoin's price, with the coin's value soaring after each one, an effect that has been dubbed the "Musk effect".

Dogecoin is a meme-based cryptocurrency

Dogecoin was never intended to be taken seriously. Its low price, low transaction costs, and active community captured the imaginations of many people who had never invested in crypto before. It has since then gained a strong following, including several celebrities.

Dogecoin's explosion in popularity led to a proliferation of other dog-themed coins, such as Baby Doge Coin, Shiba Inu, and Shiba BSC. Meme coins can span everything from the very cute to the very vulgar, and their sole purpose sometimes seems to be to give someone a laugh.

Meme cryptocurrencies don't need to have a purpose as closely tied to their underlying value, like Bitcoin and Ethereum. Bitcoin was the first decentralized cryptocurrency, creating a way for users to transact peer-to-peer privately without government intervention. Ethereum, on the other hand, has created a blossoming DeFi ecosystem with smart contracts and yield farming. In contrast, meme coins often seem to have the sole purpose of "going to the moon," a phrase popularized by Dogecoin's skyrocketing price in early 2021.

Dogecoin's success has also highlighted the influence of celebrity endorsements on cryptocurrency investments. In February 2021, American rapper Snoop Dogg joined Elon Musk and Gene Simmons in tweeting a meme of a Shiba Inu, causing Dogecoin's value to soar more than 55% and setting a new all-time high. This phenomenon, dubbed the "Musk effect," has led to concerns about the impact of celebrity endorsements on investment decisions, with many investors jumping in without researching the fundamentals of the coin.

Snoop Dogg's tweet featured a Shiba Inu

On 20 April 2021, Snoop Dogg tweeted a video that featured a Shiba Inu, the dog breed that inspired the Dogecoin meme. The video also included a thank you to Elon Musk for providing him with a spacesuit for a trip to the moon. The tweet caused the price of Dogecoin to soar by more than 55%, setting a new all-time high.

Snoop Dogg's tweet was part of a trend started by the Dogecoin community, indicating that 20 April should become DogeDay. This date was already an unofficial holiday for cannabis smokers, which Snoop Dogg is known to be. In the video, the Shiba Inu is dressed in a costume with the sign "Snoop Doge" and several cannabis pictures on top.

Snoop Dogg had previously endorsed Dogecoin, introducing the nickname "Snoop Doge" and auctioning his first collection of non-fungible tokens (NFTs), which could be purchased using Dogecoin. One of the NFTs was called "Snoop Dogge Coins".

Snoop Dogg's tweet was followed by similar tweets by Elon Musk and Gene Simmons, which further boosted the price of Dogecoin.

Elon Musk's tweets have also impacted Dogecoin's value

It is unclear whether Snoop Dogg has invested in Dogecoin, but the rapper has tweeted about the cryptocurrency. In February 2021, Snoop Dogg tweeted a meme of a Shiba Inu, the dog breed that represents the Dogecoin token. Following this, the price of Dogecoin soared more than 55%, setting a new all-time high.

Musk's affinity for Dogecoin has garnered some negative attention. In June 2022, a group of Dogecoin investors filed a $258 billion class-action lawsuit against Musk, Tesla, and SpaceX, alleging that he was part of a racketeering scheme to pump the cryptocurrency.

Musk's influence on the value of Dogecoin has been dubbed the "Musk effect". His tweets have also impacted the value of stocks for GameStop and Etsy.

Dogecoin was created as a joke

Dogecoin, which was created as a joke in 2013, has become the fourth-largest cryptocurrency by market cap, according to CoinMarketCap data. The cryptocurrency was meant to be a satirical alternative to the hype around Bitcoin. Software engineer Billy Markus and product manager Jackson Palmer launched the coin to make fun of all the crazy altcoins on the market. Dogecoin was named after the 'doge' meme, which features a Shiba Inu, a Japanese dog breed, with the word 'dog' deliberately misspelt as 'doge'.

Dogecoin is mainly used as a tipping system on Reddit and Twitter to reward quality content. It is also used as a reward for being part of an online community that uses the digital currency. Dogecoin's value is extremely volatile. It started the year at less than a penny and soared above 69 cents, continuing its astronomical ascent. Dogecoin has a market value of more than $85 billion, after hitting an all-time high price of $0.69 (69 cents) a coin.

The rise in Dogecoin's value has been linked to endorsements by celebrities such as Tesla CEO Elon Musk, Snoop Dogg, and Gene Simmons. Musk has tweeted about Dogecoin multiple times, even calling himself the 'Dogefather'. Snoop Dogg tweeted a mock "Snoop Doge" Shiba Inu album cover, and Simmons dubbed himself the "God of Dogecoin". These endorsements have caused Dogecoin's value to soar, with the cryptocurrency rising four spots on the list of the most valuable cryptocurrencies.

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