The manic price swings underscore Bitcoin's evolving—some might say immature —market, and raise questions about Musk's seriousness as well as his understanding of market dynamics.
Around 410 trillion Shiba Inu tokens worth several billion dollars were burned by young billionaire Vitalik Buterin.
The Tesla CEO's tweet followed speculation that his company was planning on dumping holdings of the cryptocurrency.
Michael Saylor, CEO of Nasdaq-listed Microstrategy, said the company invested another $15 million in Bitcoin after Tesla CEO Elon Musk said Wednesday his company would no longer accept the cryptocurrency as payment for its electric cars.
The scam, involving a fake BBC news article, is not the only one to have cheated people out of money recently.
Tesla CEO Elon Musk said Thursday that he was working with Dogecoin developers "to improve system transaction efficiency," prompting the price of the cryptocurrency to quickly spike.
On Thursday, Bitcoin fell 28.59% below its record high after Elon Musk tweeted Tesla would no longer accept it to pay for its products, based on environmental concerns.
The cryptocurrency started as a joke in 2013, but has gained mainstream attention in recent weeks, and has continued to gradually rise in value.
"Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy," said Musk in a statement.
The value of the cryptocurrency and Tesla shares fell after Elon Musk said his company would no longer accept bitcoins for vehicle purchases.
Critics of the digital currency say the energy-intensive process used to "mine" coins is bad for the environment.
According to records on Etherscan, Buterin donated 500 Ether coins, worth $2,030,580, to India's crypto COVID-19 relief fund, which according to its website, is a "community-run fund delivering relief during the ongoing Covid crisis in India."
"It's impossible for digital assets to go mainstream without clear regulation and sufficient safeguard," Vytautas Zabulis, CEO ofH-Finance, a digital asset trading company based in Vilnius, Lithuania, said in a research report.
In a survey conducted by the New York Digital Investment Group (NYDIG), about 75% of the respondents said they wanted to learn more about Bitcoin annuities and Bitcoin life insurance.
The token is one of many Dogecoin-esque meme coins that have spawned recently, but the founders are often anonymous and an expert has warned Newsweek about the risk.
Dogecoin's price surged after Musk hinted that the cryptocurrency could be used to purchase Teslas in the future.
The price rise came as an expert warned Newsweek of an increase in "over-hyped" cryptocurrencies.
Ethereum, the world's second largest cryptocurrency, soared to a record high Monday as investors placed their bets on the coin's future in commerce and looked for an alternative to Bitcoin's lofty valuation.
"#SAFEMOON has landed in Times Square! Thanks to the community who raised the funds to make this possible, we are overwhelmed with the billboard action across the globe... the message is strong. #SAFEMOONARMY," the cryptocurrency's Twitter account wrote.
Shiba Inu can currently be swapped for other cryptocurrency on decentralised exchanges UniSwap and 1Inch.
The Q&A, held Sunday, also mentioned plans for wallet customization.
SpaceX CEO Elon Musk announced the news one day after Dogecoin plummeted in price during his "SNL" appearance
The meme-inspired cryptocurrency's ardent supporters exclaimed "To the moooon!" amid Sunday's dramatic price rebound.
"We're currently experiencing issues with crypto trading. We're working to resolve this as soon as possible," Robinhood stated.
At around 12:30 a.m. ET, amid Musk's 'SNL' performance, the price of dogecoin fell to 0.5115—a 24 percent drop in value.
Surging demand for the cryptocurrency drove Square's first quarter profit to 41 cents a share, exceeding Wall Street's consensus estimate of 16 cents by about 156%
The Tesla and SpaceX CEO has suggested he will feature the joke cryptocurrency on TV—but also warned against getting too enthusiastic.
The cryptocurrency token is worth a lot less than Bitcoin, but it has an active fanbase on social media.
Countries are divided on cryptocurrency, with some looking to ban it, while others are seeking ways to incorporate it into their economic systems.
The token was launched less than a month ago and its price is not yet listed on major cryptocurrency tracking sites.