What Happened: Tesla Inc (NASDAQ:TSLA) CEO Elon Musk, known for his support of meme-based cryptocurrency Dogecoin (CRYPTO: DOGE), now seems to have turned his attention to a smaller altcoin that considers itself a close relative.
BabyDoge (CRYPTO: BabyDoge) has a value of lower than $0.00000001 but surged 236% after a tweet from Musk. The coin trades around $0.000000002108 at publication time.
Baby Doge, doo, doo, doo, doo, doo,
— Elon Musk (@elonmusk) July 1, 2021
Baby Doge, doo, doo, doo, doo, doo,
Baby Doge, doo, doo, doo, doo, doo,
Baby Doge
Musk’s tweet came in the form of a rhyme celebrating BabyDoge, presumably in reference to the popular "Baby Shark" song.
See Also: How To Buy BabyDoge
Why It Matters: The price of the cryptocurrency immediately surged by over 200% after Musk’s tweet and now has a fully diluted market cap of over $850 million according to CoinMarketCap.
The coin’s trading volume was also up by 225% at the time of writing, and amounted to $52 million, exceeding some leading altcoins like Amp (CRYPTO: AMP), FTX Token (CRYPTO: FTX), and Avalanche (CRYPTO: AVAX).
“How is this not criminal activity. Market manipulation on a massive scale,” commented one user on Twitter.
“It isn’t regulated yet but even if it was, he’s protected. He didn’t go to jail for the 420 tweet, he’s not going to go for scamming followers on dog money,” replied another.
"From a technological perspective, Baby Doge Coin does absolutely nothing special," writes Benzinga's Logan Ross. "Baby Doge transactions redistribute 10% of the total amount to holders of the token. This effectively creates a pyramid scheme where the earliest and biggest bag holders receive the largest amount of the fees and make the most passive income. "
Price Action: Meanwhile, market-leading cryptocurrency Bitcoin (CRYPTO: BTC) traded 3.6% lower over the past 24 hours with a price of $33,516 at the time of writing. Dogecoin was up as little as 0.90% overnight, despite a 43% uptick in trading volume which stood at $2.7 billion at press time