Elon Musk's Statement Curb Dogecoin Rise: No Funds for AI Business

• Dogecoin (DOGE) Sees Slight Dip After Elon Musk's Announcement
• Association of DOGE with xAI's Funding News
• Musk's History with DOGE

Dogecoin (DOGE) Sees Slight Dip After Elon Musk's Announcement

The bullish run of Dogecoin$0.091 -0.42% (DOGE) began to decline during Wednesday's U.S. morning hours following an announcement from tech mogul Elon Musk. He clarified that his artificial intelligence venture xAI has no plans to initiate a funding round. Subsequently, DOGE dropped to $0.10, marking a 1.1% decrease in the previous hour, thus offseting some gains from a 14% rally that occurred over the preceding day.

Association of DOGE with xAI's Funding News

On Tuesday, DOGE saw a 7% surge in response to a filing with the U.S. Securities and Exchange Commission. Initially reported by CoinDesk, the document suggested that xAI (known as X.AI in legal documentation) could attempt to accumulate up to $1 billion in funding and had already amassed $134.7 million. Historically, Musk's comments and public posts have influenced DOGE's market performance due to his apparent admiration for the dog-themed meme token.

Musk's History with DOGE

In April, Musk alluded to the possibility of incorporating DOGE payments into X, previously known as Twitter. He suggested dogecoin as a potential payment method for Twitter Blue, a premium service with enhanced features offered by the site. Concurrently, Musk's electric vehicle business, Tesla, already accommodates DOGE transactions for merchandise sold in the Tesla Store.

Edited by Jonathan Stoker