Elon Musk supports Dogecoin trading on Coinbase

Elon Musk supports Dogecoin trading on Coinbase

Dogecoin listing on Coinbase would be tantamount to an accolade. No wonder the most prominent DOGE investor is in favour of trading on the exchange. But his tweets could yet be Elon Musk’s undoing.

Dogecoin is somewhere between a fun coin and a serious investment. Born as a Bitcoin parody, the cryptocurrency has built up a loyal Ethereum Code investor community over the years that could not have found a more prominent ringleader in Elon Musk. In a recent Twitter message, the space expeditor now endorses a listing on Coinbase.

Dogecoin soon on Coinbase?

Coinbase performs a kind of hinge function to the crypto market for US institutional investors. Not only MicroStrategy regularly replenishes its holdings via the exchange. Tesla, too, transacted its 1.5 billion US dollar bitcoin investment via Coinbase. For professional US investors, the crypto exchange’s OTC desk provides access to the crypto market; if Coinbase takes a cryptocurrency into trading, it plays with the big boys.

At least that is the hope of a DOGE enthusiast who hopes for a door-opening effect from trading on the platform and could immediately count on Elon Musk’s support.

Do you think Coinbase should allow Dogecoin on their platform? It would give many people easy access to DOGE.
Tweet from @itsALLrisky

The question was followed by a terse and unequivocal „Yes!“ from Musk himself. The reaction is hardly surprising, bullish doge tweets seem to have become the Tesla CEO’s hobby by now. But although Musk’s word is likely to carry weight with the Coinbase board, it is questionable whether this alone prompts the crypto exchange to take the step. Interest on the part of customers with purchasing power is likely to be close to zero for Dogecoin. After all, the cryptocurrency is a black box that is subject to enormous fluctuations even more than other crypto assets.

Moreover, and this is likely to be the decisive knock-out criterion for large investors, DOGE holdings are already centralised to the highest degree. As BTC-ECHO reported, a single wallet holds just under a third of the amount in circulation, and the 20 largest wallets account for half of all Dogecoin. This, combined with an increased susceptibility to manipulation, is unlikely to lure the risk-averse „big money“.

Nevertheless, the reception is not entirely promising. Even if institutional investors, with the exception of Elon Musk, tend to keep their hands off Dogecoin, demand among small investors has continued to rise in recent months. The increased DOGE trading volume is unlikely to have passed Coinbase by.

In addition, payment service provider BitPay and sporting goods manufacturer Wooter Apparel have only recently accepted the cryptocurrency as a means of payment. The Doge-friendly signals from the business community at least increase the chances that Dogecoin will become the No. 50 tradable asset on Coinbase in the future. However, these hopes have initially bounced off the price. The DOGE price fell by 8.8 per cent on the day and was trading at 0.056 US dollars at the editorial deadline.