Dogecoin, the growing cryptocurrency created as a “joke”, has revealed 3,000% so far this year.
The price of the dogecoin, which began to rise in October last year, with the start of the last bitcoin bull race, added almost 400% this week alone – screaming in the top five cryptocurrencies, its market capitalization reaching about $ 50 billion.
Dogecoin mania has taken the world by storm this week, but some well-known investors predict that the dogecoin price rally could last longer, and the memecoin has so far managed to maintain its huge gains.
Dogecoin, the “cheeky” cryptocurrency created as a “joke”, was triggered to the unseen … [+]
STRF / STAR MAX / IPx
The latest frenzy of dogecoins, spurred on by Telsa billionaire Elon Musk, has been largely driven by retailers hoping to get rich quick and triggering warnings to those throwing in the dogecoin wagon could be burned. Uphold, a California-based cryptocurrency exchange, reported that the number of users buying dogecoin has doubled in the past week.
“Raising Dogecoin is a classic example of the theory of older fools, dogecoin investors practically bet they will be able to cash in by selling the next person who wants to invest,” David Kimberley, an analyst at UK trading app Freetrade, said in e-mail.
“People buy cryptocurrency, not because they think it has any significant value, but because they hope that others will pile up, increase the price and be able to sell and earn quickly. But when everyone does this, the bubble eventually has to explode and you will be left unchanged if you don’t come out on time. And it’s almost impossible to say when that will happen. “
Others have compared the dogecoin to GameStop, the video game retailer that has seen its stock price rise this year as Reddit, Telegram and Discord retailers pile up in stock in a bid to raise their price.
“In the same way that the GameStop frenzy was launched as a Wall Street fighting game against The Little Guy, dogecoin is presented as a fighting game against crypto-established giants like bitcoin,” said Nigel Green, executive director of the group. deVere, said in comments sent by email.
“We can expect many novice retail investors – who may not have the necessary financial resilience – to be burned in the doghouse frenzy, as in the case of GameStop.”
The price of dogecoin has risen by almost 400% this week alone and is now around 30 cents per … [+]
Coinbase
While dogecoin is based on bitcoin’s decentralized blockchain technology, there is little developer activity and a handful of people own the vast majority of dogecoin tokens in circulation.
“It is very difficult to compare dogecoin with bitcoin, which works with innovative technology and has a limited supply, giving it a value of scarcity, among other valuable attributes,” said Green.
Last month, data revealed that an anonymous person or group controls about 28% of all dogecoin chips.
“It takes one person to throw away all their holdings so that the whole market becomes a reservoir,” Kimberley added.