Tesla chief executive Elon Musk sparked a rally yet again in the prices of Dogecoin on Wednesday after he revealed that he bought the crypto for his 9-month old son X Æ A-Xi, RepublicWorld and Fox News reported on Thursday.
Pronounced "ex ash eh twelve" - with the last two syllables a tribute to U.S. aerospace company Lockheed Martin's A-12 plane, Musk, in a tweet, said he purchased the trending cryptocurrency for his baby "so he can be a toddler hodler."
Dogecoin (DOGE) rallied as much as 16% after the disclosure, spiking from $0.069 to $0.08. The altcoin features the face of the Shiba Inu dog from the "Doge" internet meme as its namesake ang logo.
'Altcoin' is a consolidation of two words: 'alt' and 'coin' where alt means 'alternative' and coin means "cryptocurrency."
Dogecoin was launched on Dec. 6, 2013 and quickly formed a cult following, hitting a market capitalization of $5.3 billion on Jan, 28, 2021. As of Thursday, Dogecoin is at No. 12 in CoinMarketCap.com's ranking of the world's cryptocurrencies and priced at $0.07314.
Even Billy Markus, who founded Dogecoin, cannot make sense of the swelling in price of the coin that he started as a joke.
"The concept of Dogecoin being worth 8 cents is the same as GameStop being worth $325. It doesn't make sense," the 38-year old Markus told The Wall Street Journal. "It's super absurd. The coin design was absurd," he said.
Musk referred to Dogecoin as his "fav cryptocurrency" in a 2019 Twitter comment.
The billionaire entrepreneur had earlier added "Bitcoin" to his Twitter bio, which resulted in a spike in the digital currency's price by as much as 20%.
Earlier, Musk's electric car company Tesla announced it had purchased $1.5 billion in Bitcoin, adding it will start accepting the crypto as a form of payment.
Musk did not say how much Dogecoin he bought for his, whose mother, Grimes, is an electronic musician.