Dogecoin surges with the best example of influencer marketing from Elon Musk.
Dogecoin is a cryptocurrency which started off as a joke, has jumped in value by 50% after inventor Elon Musk dubbed it “the people’s crypto”. The ultimate endorsement of what is commonly known as an example of influencer marketing.
Cryptocurrencies such as Dogecoin and Bitcoin are generated by computers. Their supposed value comes from the finite number that can be computed.
Dogecoin uses a Shiba Inu dog as its mascot and is based on a meme featuring the animal. It was created in 2013 by a pair of software workers after one of them made a joke about the next big cryptocurrency
Although Elon Musk is not your traditional influencer, the impact of his endorsement was simply spectacular.
Cryptocurrencies are volatile like Dogecoin
The currency has risen more than 800% in the year so far.
After reaching a high of $0.058 (4.2 pence), each dogecoin is currently changing hands for about $0.046, suggesting a total value for all 128bn coins of about $5.89bn.
Cryptocurrencies are volatile but the volatility is how people make money from them. But since they are not based on any intrinsic value like gold or land, and no ability to generate an income like a company or bond, cryptocurrencies are extremely volatile and can crash as fast as they rise.
Influencer marketing isn’t always based on expertise
Cryptocurrencies have often used influencers to promote their brand, and you may have heard or had some people reach out to you ‘to invest in there platforms’ – Be wary of those invitations because a lot is based on fraudulent activity and a way of you sending money via a website to a thief. Influencer marketing isn’t always based on expertise. As a rule of thumb, anytime someone asks you to deposit a fee or send money abroad, should be an immediate red flag.
People have lost large amounts of money in steep drops in the value of cryptocurrencies and in hacks and corrupted or lost hard drives.
Bitcoin’s value dropped by $5,000 on 4 January to about $29,000 before recovering the lost ground. On 11 Jan, it dropped $9,000 to $32,000.