‘Musk Effect’ Sends Dogecoin Over $0.05 In Reference To ‘Dojo’

Elon Musk has pushed the price of Dogecoin up again with a single tweet late Sunday night, the latest example of the "Musk effect" influencing the cryptocurrency's value.

In his tweet, Musk made reference to Dogecoin and Dojo, the supercomputer owned by Tesla that is thought to be named after a traditional Japanese martial arts gymnasium, Benzinga reported. The tweet sent Dogecoin up over $0.05 early Monday morning, according to CoinMarketCap.

According to News 18, Musk first made mention of Dojo on Twitter in November 2020 to a fan, saying that the supercomputer “will be used to label the data Tesla receives from the vehicles with cameras that Tesla has on the road. If a user allows, Tesla can pull video data from thousands of cars and use it for artificial intelligence training.”

This is not the first time Musk has mentioned Dogecoin on Twitter and caused a big reaction.

Over the last month, the Tesla CEO has posted a string of tweets favoring Dogecoin, which have been sent the price of the cryptocurrency surging. On Sunday, Dogecoin was up 4.28% after Musk’s single tweet, News 18 reported.

In a number of previous posts, Musk has said he bought Dogecoin for his son so he could be a “toddler hodler” and gave props to rapper Snoop Dogg and KISS frontman Gene Simmons for owning Dogecoin in a meme. He has also said that “Dogecoin is the people’s crypto.”

In what is often referred to as the “Musk effect,” the billionaire seems to have the Midas touch when it comes to influencing the market. In previous tweets, Musk has pushed the stock price of GameStop, Etsy, Shopify, and Cyberpunk’s CD Projekt up significantly with just a mention.

With a net worth of $199 billion, according to the Bloomberg Billionaires Index, Musk has also impacted Bitcoin’s price. He announced on Feb. 9 that Tesla had purchased $1.5 billion of the cryptocurrency as an investment and now allows it for payment to purchase Tesla vehicles.

The move sent the currency to a record high at the time. On Sunday, Bitcoin was up 4.19% at $57,523.69, News 18 said.