Why does the crypto-community not respond to Musk’s tweets about Dogecoin?
In late August-early September 2021, Dogecoin was trading at 30 cents per coin. This year is the best year for meme coins and, without a doubt, the worlds’ number 1 influencer Elon Musk played the main role in the recognition of Dogecoin. But why did Musk lose his “magic” in the second half of this year?
Musk was the first to attract audience attention to the coin. At the beginning of 2021, after almost every tweet he made, the market reacted with an increase in the value of the asset.
Source: Cryptowatch, Twitter, Galaxy Digital Research
According to Google Trends users’ interest in Dogecoin was higher than in Bitcoin for the first time ever in May 2021. Moreover, the recognition of the comic altcoin exceeded serious the most serious projections. According to a joint survey by Harris Poll and CouponCabin, Dogecoin is even more recognizable than Ethereum among US residents. Cointelegraph writes about it here:
On May 14, Musk tweeted that he had been “collaborating with Dogecoin developers to improve the efficiency of system transactions for some time.”
After that, the cryptocurrency returned for an extended period of time to the top 5 by market capitalization.
The asset’s growth was also facilitated by the announcement of a listing on the Bitcoin exchange Coinbase. Musk previously proposed users vote on whether Tesla should accept payments in Dogecoin or not.
More than 78% of respondents supported this idea. The head of SpaceX also announced that the company would send the Doge-1 satellite to the Moon. According to Musk, the mission would be fully paid for with meme coins.
However, in the second half of the year, Elon Musk lost his “magic”. On July 13, the CEO of Tesla and SpaceX joked that Tesla cars might render a Dogecoin logo if they notice Shiba Inu dogs. Altcoin quotes practically did not change after Musk mentioned it, and the dogecoin price rose by 2% and immediately returned to its previous values.
Earlier, the businessman repeatedly mentioned altcoin in his tweets and this led to an increase in its rate.
Why did the market react so actively to Elon Musk at first? In the Dogecoin situation, Musk was a super influencer. A year ago, Reddit users overclocked the asset’s value by more than 800% in 24 hours. However, in Musk’s case, it wasn’t community influence, but one person. The head of SpaceX had been warming up the market for several months in early 2021, and at some point, he even overheated it, when the interest in Dogecoin significantly exceeded the demand for information about Bitcoin.
First of all, as the audience got used to his messages and already perceived it as a fact that Musk is a Technology evangelist in the context of Dogecoin.
At the initial stage, the message about cooperation with the cryptocurrency development team brought a positive effect. However, all subsequent messages were just a reminder that Musk is watching the altcoin, and this was not enough anymore.
The Dogecoin case study illustrates well how influencer marketing works. The first step is to draw the audience’s attention to the asset. If you use the power of a super-influencer, there are chances the story will go viral on a global scale.
Do you recall how in March 2016 the MSQRD application was presented to the public? It gave the possibility to attach a photo to a filter mask and talk with friends on Facebook or Instagram in a new appearance.
On March 2, 2016, during his show, Jimmy Kimmel showed the application, and a week later Mark Zuckerberg offered the creators of MSQRD a deal, after which the startup was bought by Facebook. Kimmel and Zuckerberg also acted as super influencers, but there was a second step taken. After they attracted the attention of the audience to the product, negotiations followed, and this ultimately led to the sale of the startup to a larger player. If there are no specific business steps, the market either freezes in an equilibrium position and becomes resistant to the messages of a particular influencer or returns to its starting point.
Influencers do not implement the brand business strategy, but they attract a new audience to the product or remind an already existing loyal audience about it. If the brand is ready for a new audience and knows what to offer in a specific situation, then collaboration between business and creators will be successful.
However, the super-fast warming up of the market can be a big business challenge. If a company is not ready to go global, then the effect of cooperation with super influencers can have negative consequences. It is simply because market expectations will not be met.
However, there is one recommendation that can help to avoid problems — using the services of fast-growing influencers who have not yet become social media superstars. By the way, this is what happened with Dogecoin. Reddit users massively acted as fast-growing influencers, and only later did the “megastars” join. It happened spontaneously, but this does not mean that the effect cannot be transferred to your business.
We at Hypetrain prepare data for the fastest-growing channels on YouTube, including those that gain subscribers quicker than others.
Keeping an eye on the TOP 100 fast-growing YouTube channels every month is meaningful for several reasons.
Firstly, it can help you discover new names and future stars, those whom you have not followed yet, but who are already worth being subscribed to. Secondly, these insights help to see the difference in prices for ad integrations between big YouTube stars and those who are just breaking into the rating of the most popular creators among the audience. For example, the recommended advertising price for Youtuber MrBeast is $ 260–290K, while the leader of the July Magicianul Robert Tudor’s rating is $ 1.9–2.1K. Of course, it is important to take the audience diversity and other features of each YouTuber into account, but, as a rule, the participants of the fastest growing YouTube channels rating are always being underestimated in comparison with the stars.
In a word, leveraging the power of rising social media stars who are rapidly gaining a new audience, can, to some extent, help to achieve the same effect as Reddit users with meme coins. Talking about influencer marketing, experts strongly recommend paying attention not only to superstars from social networks but also work with those who can attract the attention of the audience, and not overheat the market with high expectations. Otherwise, in this case, even Elon Musk may lose his “magic”.