Digital Marketing Strategy: What Dodgecoin & Elon Musk Have in Common

Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer in 2013. It started as a joke, to the point that its logo is a very popular Shiba Inu meme at the time: the doge. However, Dogecoin is now far from being a mere joke. As reported by CNN Business, the total value of Dogecoins in circulation was up to 50 billion dollars by 2021, so you could tell it actually evolved into something huge.

What can you use it for? Like all cryptocurrencies, Dogecoin can be thought of as an investment and as a liquid asset. In fact, some companies now accept Dogecoin as a payment method, one of them being SpaceX, the famous aerospace manufacturer and space transportation services company ruled by the magnate Elon Musk, who has played a key role in boosting its value by 4000 percent in 2021.

Musk has been Dogecoin’s social media champion, constantly tweeting about the cryptocurrency to his 50 million Twitter followers. His tweets have proven their potential to skyrocket the cryptocurrency’s value, and investors certainly know this. In fact, as estimated, just one of Musk’s tweets can increase Dogecoin’s value by up to 11%.

However, Musk’s public statements are not always helpful in this regard. While hosting the live television show Saturday Night Live, Musk played the role of a financial expert for a fun sketch, and after being asked repeatedly what Dogecoin was, he ultimately answered that it was “a hustle”.

The joke ended up being so costly that, as reported by CNN Business, it represented a 40% drop in Dogecoin’s market value: after having reached a trading value of 70 cents, Musk’s statement caused investors to sell off Dogecoin, reducing its trading value to 44 cents. The major tumble of the cryptocurrency after Musk’s appearance on Saturday Night Live was so spectacular that was covered by major media outlets such as CNN Business, Bloomberg, Rolling Stones, and Reuters.

This is not only a clear example of how volatile cryptocurrencies and the stock market are; it is also a demonstration of how relevant traditional media still is, and how something as classical as TV shows can truly impact the digital world. 

Whether Dogecoin will reach the value of 1 dollar in the upcoming years or not, is still a mystery. However, its story can teach brands a valuable lesson: beware of the relationship between traditional and digital media, and acknowledge the importance that the former still has.

At MileniumGroup, an expert PR and communications agency, we are experts in managing your brand communication making the most of traditional and digital media, according to your needs. If you want to know how we can enhance your marketing and communication strategies in mixed media, contact us.