Also an X IPO, online banking, hedge fund pay and temperature arbitrage.
Matt Levine
Dogecoin is a tradable electronic token representing the value of Elon Musk’s attention. When Elon Musk tweets about Dogecoin, its price goes up. When he goes on “Saturday Night Live” and makes painful jokes about Dogecoin, its value goes up. When Elon Musk does not shine the bright light of his attention on Dogecoin, its value drifts down.
This is not entirely true — somebody traded Dogecoin even before Elon Musk paid attention to it — but it’s a reasonable model. It is not investment advice, though it does seem to have been a large part of the investing approach of Alameda Research, which was a multibillion-dollar crypto trading firm for a while. If you are a crypto hedge fund, or a retail crypto trader, this model would suggest that you should buy Dogecoin just before Musk tweets about it and sell it a bit after he tweets, but that’s hard (you have to know when he’ll tweet). A second-best model might be to buy Dogecoin shortly after Musk tweets about it and then sell it a bit later, and that does seem to have been Alameda’s approach
