GME Stock – Until Dogecoin, which started from a parody, became the 5th largest cryptocurrency in the market
Dogecoin whose price has skyrocketed
Dogecoin (DOGE) was developed in 2013. No one imagined it would be the current price. Prices soared 473% in a week as retail investors worked to make April 20th “Doge Day”.
Dogecoin is currently one of the most traded cryptocurrencies, and about 75% of cryptocurrency users invest in Dogecoin. As of April 20, 2021, it is trading at $ 0.40 (about 44 yen) per coin, and its market capitalization has reached 52.2 billion dollars (about 5 trillion yen). Due to recent price increases, DOGE has become the fifth largest digital asset by market capitalization. As a result, it surpasses even the popular altcoins Cardano, Polkadot and Tether.
Neeraj Khandelwal, co-founder of Indian crypto exchange CoinDCX, explains the bull market for Dogecoin:
It seems that about 75% of users have invested in Dogecoin. The number of accesses suddenly increased about 15 times as much as usual, and it became very difficult to manage the site.
But is Dogecoin worth the price in today’s crypto market? Or is it a “pump and dump” designed by individual investors (the price of a worthless asset rises artificially rapidly and then plummets at a certain price)? To find out, let’s take a look at the background and brief history of Dogecoin.
Background and development
Originally, Dogecoin is a digital asset developed as a joke in 2013. It was developed using the Shiba Inu of the meme “doge” that was popular at that time. The founders created Dogecoin to satirize all the digital assets that were initially said to be “the next Bitcoin.”
At that time, all cryptocurrencies were desperate to differentiate themselves, but they all felt the same. Therefore, we developed it as a parody of those virtual currencies.
In 2013, at least 11 million Dogecoins were stolen from one of the cryptocurrency wallets, “dogewallet.com”. The cyberattack has made the currency the most searched cryptocurrency on Twitter. As a result, Dogecoin became famous and caught the eye of many investors.
The biggest concern about Dogecoin, which has a supply of around 130 billion, is that there is no upper limit on supply, which means that coins are likely to become inflationary.
Andrew Sullivan, writer at Asianmarketsense.com, said:
Currently, the majority of coins are owned by very few people. They will want to monetize when they reach a certain level. At that time, the most affected are considered to be the last small investors to enter.
Given the high volatility we’ve seen with Dogecoin, it’s likely that buying from now on is a high risk.
Wishes of Dogecoin supporters
The sharp rise in Dogecoin prices was triggered by Elon Musk’s mention of Dogecoin on Twitter in February 2021.
Relation:Elon Musk, Twitter hijacking damage?Summary of contents
In February, world-famous rapper Snoop Dogg posted a photo of his album cover with a Dogecoin icon and the title printed as “Snoop Doge” under his own name. Mr. Musk made a lot of posts about Dogecoin as if to respond, and as a result, the price of Dogecoin soared.
Proponents of Dogecoin have designated April 20 as “Dogeday 4/20” and are about to celebrate the phenomenon of meme investment.
They want to maximize their prices and aim to make them cryptocurrencies worth the GameStop (GME) stock price. I don’t know if investors who participated from the middle can raise the price to 1 dollar (about 108 yen). What is certain is that Dogecoin is the fifth-largest cryptocurrency, has a higher market capitalization than the car maker Ford, and is becoming more than just a joke.
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“Cryptocurrency” means “cryptographic assets”