Elon Musk has expressed a strong and vocal affinity for Dogecoin (DOGE) over several years, frequently referring to it as his favorite cryptocurrency and the "people's crypto." He bases this endorsement, in part, on interactions with Tesla and SpaceX employees who support it, contrasting it with Bitcoin, which he feels is favored only by the wealthy. Despite his declared fondness, Musk maintains a stance of caution regarding investment, explicitly warning people not to invest their life savings or "bet the farm" on any cryptocurrency, including DOGE.
Musk has demonstrated tangible support through his companies and has suggested potential future uses for the meme coin. Tesla has accepted DOGE for branded merchandise payments since 2022, and there has been speculation regarding its potential use within the X platform's financial services infrastructure. However, Musk has also been clear about the difference between support and financial advice, making statements that temper speculative excitement.
His ongoing promotion of Dogecoin has led to significant market impact and legal scrutiny, with investors filing lawsuits alleging price manipulation through his social media influence. Furthermore, the acronym for the Department of Government Efficiency (DOGE), which Musk once led, mirrored the meme coin's name, sparking temporary price spikes due to confusion, though Musk later clarified there were no plans for the U.S. government to integrate the cryptocurrency.
Context
Elon Musk's comments on Dogecoin are significant because of his substantial influence over public discourse and financial markets via his ownership of X (formerly Twitter) and his leadership at Tesla and SpaceX. His tweets have frequently led to volatile price swings for DOGE, leading to him being labeled the "Doge father."
This influence has drawn legal challenges, with investors suing Musk and Tesla over claims that his promotion amounted to a "pyramid scheme" by artificially inflating the price. Although a federal lawsuit was dismissed in 2024, the history highlights the perceived power Musk wields over the meme coin's valuation.
Timeline
- Elon Musk posted his first Dogecoin-related tweet, simply saying "One Word: Doge."
- Musk captioned tweets declaring Dogecoin as the "people's crypto" and stating "no highs, no lows, only Doge."
- Musk appeared on Saturday Night Live as "The Dogefather," referencing his support, which caused a significant, though temporary, price fluctuation.
- Tesla announced it would accept Dogecoin as payment for select merchandise, causing the coin's price to spike.
- Musk stated at the Qatar Economic Forum that he supports Dogecoin because less wealthy people asked him to, differentiating it from Bitcoin.
- Musk reiterated his support, calling it the people's crypto and suggesting that Tesla might accept it for payments 'at some point.'
- The Department of Government Efficiency (DOGE) website temporarily displayed the Dogecoin mascot, leading to price speculation, though Musk later clarified no government crypto integration was planned.
Actions Taken
- Payment IntegrationTesla began accepting Dogecoin as payment for select branded merchandise.
- Personnel AppointmentMusk invited Dogecoin co-founder Billy Markus to advise the Department of Government Efficiency (DOGE).
- Technical DevelopmentTechnicians reportedly found a complete Dogecoin integration interface in the backend payment system for Tesla Model 3 and Cybertruck websites.
Key Quotes
"DOGE is people's crypto. I will support it. A lot of rich people support Bitcoin, but I will support Dogecoin. You know what, Dogecoin is for you (the regular people) and I will support it."
"I'm not advising anyone to buy crypto or bet the farm on dogecoin."
"I think the flat inflation of dogecoin, which means decreasing percentage inflation, is a feature, not a bug."
"Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge. They aren't financial experts or Silicon Valley technologists. That's why I decided to support Doge—it felt like the people's crypto."
Criticism
The Dogecoin co-founder called Musk a "self-absorbed grifter" due to his promotion of the coin.
Filed a $258 billion complaint in 2022, citing Musk's repeated use of his social influence to promote the altcoin, which he claimed artificially inflated the price.
Expressed concern that Dogecoin's value is dangerously dependent on Musk's individual tweets rather than its technological utility.
Sources6
Elon Musk Breaks Silence on Crypto, Warns Against Dogecoin Speculation
* This is not an exhaustive list of sources.