It’s possible for two contrasting statements to be valid:
- Dogecoin is a joke that exemplifies the irrational exuberance and uncontrolled risk-taking evident in pandemic-era markets, making it a poor investment choice.
- However, Dogecoin is incredibly enjoyable, largely owing to the characteristics mentioned in statement 1.
Consequently, the Dogecoin logo, featuring an endearing Shiba Inu puppy, is an ideal symbol for the Twitter era that Elon Musk presides over. Musk purchased the social network for $44 billion last year, and it is now worth approximately $20 billion, arguably making it one of the most foolish investments of the last two decades. (Going further back in time, the AOL-Time Warner merger would come up in AIM chat rooms.)
Despite this, Musk appears to be enjoying his investment, tweeting dad jokes and re-platforming some of the most harmful voices on the planet. Now that he has incorporated the Dogecoin logo as Twitter’s home button, meme coin holders are also having a great time as the coin’s value experiences a significant boost.
While it’s not the glory days of “Dogecoin to the moon” in 2021, it’s a welcome break from the more serious headlines in the cryptocurrency world. It’s amusing to imagine Elon Musk as a meme himself, surrounded by chaos in a crypto room filled with criminal charges, bankruptcies, subpoenas, and enforcement actions from US regulators, while he calmly holds the Dogecoin dog and says, “this is fine.”
However, there are concerns about what Musk’s former colleagues at the Securities and Exchange Commission (SEC) or other federal regulators will make of his apparent influence on a cryptocurrency rally by featuring its logo on the homepage of a major social media platform that he owns. This is occurring in the midst of a confusing array of mixed signals from the government on which tokens are securities regulated by the SEC and which are commodities or derivatives overseen by the CFTC.
This story has the potential to become even more entertaining. Do individuals who buy a joke coin like this truly need or deserve protection from the government? And, if so, is Dogecoin a security or a commodity? It’s debatable whether it’s either and instead might be viewed as a 21st-century comedic financial performance art project. Perhaps the National Endowment for the Arts should join in the fun.
