Why does the crypto-community not respond to Musk’s tweets about Dogecoin?
In late August and early September 2021, Dogecoin traded for 30 cents for each coin[SG2] . Elon Musk, the world’s top influencer, greatly aided the recognition[SG3] of Dogecoin, and unquestionably, it was the best year for meme coins. But why, in the second half of this year, did Musk lose his “magic”?
The currency was initially brought to people’s attention by Musk. The market responded at the beginning in 2021 to practically every tweet he sent by raising the asset’s value.
For the first time ever, users’ interest in Dogecoin surpassed that of Bitcoin in May 2021, according to Google Trends. Additionally, the comic altcoin’s popularity surpassed the bleakest estimates[SG4] . A study by Harris Poll and CouponCabin found that Dogecoin is even more well-known among US citizens than Ethereum. Cointelegraph states, “Musk tweeted on May 14 that he had been ‘collaborating with Dogecoin developers to improve the efficiency of system transactions for some time.’”
Afterward, the cryptocurrency briefly reentered the top five by market capitalization before leaving again.
The news of the Bitcoin exchange listing on Coinbase also contributed to the asset’s ascent.
Musk had previously suggested that people vote on whether or not Tesla should accept Dogecoin payments. More than 78% of those polled agreed with this viewpoint.
The Doge-1 satellite would be launched to the Moon, according to SpaceX’s CEO, Musk, who claimed that meme currencies would be used to fully fund the project.
However, Elon Musk lost his “magic” in the year’s second half. The Tesla and SpaceX CEO joked on July 13 that if they see Shiba Inu pups, Tesla automobiles might display the Dogecoin emblem. After Musk said that, altcoin quotations essentially did not move, and the price of Dogecoin increased by 2% before reverting to its prior levels.
In the past, the businessman frequently highlighted altcoin in his tweets, which increased its price.
How is the influencers’ “magic” born?
Why did the market initially respond so strongly to Elon Musk? First, Musk played a major role in the Dogecoin issue. A year ago, Reddit users increased the asset’s value by more than 800% in a single day. But in Musk’s situation, it was just one person, not the whole.
Early in 2021, the CEO of SpaceX warmed the market for several months before he accidentally overheated it when the demand for knowledge about Bitcoin was substantially outstripped by Dogecoin interest.
But why did Musk’s influence stop working?
First, the audience became accustomed to his messages and assumed Musk was an advocate for technology in the context of Dogecoin.
The initial statement encouraging collaboration with the cryptocurrency development team had a favorable impact. However, the following statements were merely a reiteration that Musk is keeping an eye on the altcoin, which was no longer sufficient.
The Dogecoin case study explains influencer marketing well—bringing the audience’s attention to the asset is the first step. There is a chance that the story will go viral on a global scale if you use a super-influencer.
Do you remember how the public was introduced to the MSQRD application in March 2016? It provided the ability to talk with friends on Facebook or Instagram in a new way by attaching a photo to a filter mask.
Jimmy Kimmel demonstrated the software during his show on March 2, 2016. A week later, Mark Zuckerberg made a business offer to the MSQRD founders, and Facebook subsequently acquired the startup. Although Kimmel and Zuckerberg both performed the role of super influencers, another action was taken. Negotiations ensued when they drew the audience’s attention to the product, resulting in the startup’s sale to a more established player. Without specific corporate actions, the market either returns to its starting point or freezes in an equilibrium state, becoming resistant to the signals of a particular influencer.
Influencers draw in new customers or remind the existing and devoted customer base about it; they do not carry out the brand business strategy. Collaboration between businesses and creators will be successful if the brand is prepared for a new audience and knows what to offer in a particular circumstance.
However, the market’s incredibly quick warming up can present a significant business issue. If a business is not prepared to go global, working with super influencers may have unfavorable effects because the market’s expectations won’t be satisfied.
Nevertheless, utilizing the services of rapidly expanding influencers who are still up and coming on social media can help you avoid issues. By the way, Dogecoin experienced the same thing. Reddit users acted in large numbers as quickly expanding influencers, while the “megastars” only later joined. Although it occurred on its own, this does not mean that your company cannot benefit from it.
Hypetrain prepares data for the YouTube channels that are expanding the quickest, including those that pick up subscribers more quickly than others.
It’s important to monitor the TOP 100 rapidly expanding YouTube channels each month for several reasons.
First, monitoring channels can assist you in finding new names and rising stars that already deserve your subscription but who you have not yet followed.
Second, this data allows the comparison of costs for ad integrations between well-known YouTube stars and newcomers to the list of the most well-liked producers. For instance, Mr. Beast’s suggested advertisement price is between $260 and $290K, whereas Robert Tudor’s, Magicianul has a rating between $1.9 and $2.1K. Of course, it’s necessary to consider the variety of each YouTuber’s following with their other qualities, but generally speaking, the contributors to the fastest-rising YouTube channels are rated lower than the stars.
In other words, it may be possible to achieve the same result as Reddit users using meme coins by utilizing the influence of rising social media stars who are rapidly establishing a new following. When it comes to influencer marketing, experts highly advise focusing on more than just the social media stars and working with individuals who can draw in the public rather than overheating the market with unrealistic expectations. Otherwise, even Elon Musk might lose his “magic” in this situation.