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Dogecoin Rockets on Tweet from Tesla's Musk

'Tesla will make some [merchandise] buyable with Doge & see how it goes,' Musk tweeted. His words frequently move digital currencies.
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Dogecoin, the cryptocurrency that began as a joke, blasted higher Tuesday after Tesla Chief Executive Elon Musk said the electric-vehicle maker would accept it for payment.

“Tesla will make some [merchandise] buyable with Doge & see how it goes,” Musk tweeted.

The digital currency recently traded at 19.05 cents, up 20%. It has soared 5,823% in the last year but has slid 43% in the past six months. 

Volatility is the rule in cryptocurrency markets.

Dogecoin and other digital currencies frequently move based on Tweets from Musk. Dogecoin has a market capitalization of $25 billion, making it the 10th largest cryptocurrency, according to CoinMarketCap.

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The currency was created by software engineers Billy Markus and Jackson Palmer nine years ago. It was named after the Japanese dog shiba inu .

In August 2020, dogecoin sparked creation of another joke cryptocurrency, shiba inu, which promotes itself as “dogecoin killer.” Shiba inu was formed by an anonymous person or group named Ryoshi.

Shiba inu has a market cap of $18 billion, putting it No. 13 among digital currencies.

The fact that two joke currencies have become so big may point to major froth in financial markets, as investors go way out on the risk curve to find returns.

The biggest digital currency, of course, is bitcoin, with a market cap of $885 billion. It recently traded at $46,820, down 0.16%.

Bitcoin has moved all over the map in the past 52 weeks, as fear and greed have coursed through the market. It has traded in a range of $19,080 to $68,790 during that period.