It looks as if the effects of r/WallStreetBets-GameStop stock fiasco has spilled over into the cryptocurrency space, with the infamous meme token Dogecoin (DOGE) experiencing an explosive price surge over the past day and a half.
At 12.09 p.m. (GMT+8) on January 29, 2021, the price of the cryptocurrency infamously hailed as a “shitcoin” (a term used to denote cryptos with no inherent value or purpose) in the past surged to an all-time high of US$0.077 per DOGE after entering a bullish run on the morning of January 28, with the then price still hovering at around the US$0.0077 mark.
Dogecoin was created as a fork of another well-known cryptocurrency called Litecoin in 2013, and was always intended by its founders to be something of a meme rather than a serious crypto with a store-of-value asset like Bitcoin, nor as a functional token like Ethereum.
“Dogecoin (DOGE) is based on the popular “doge” Internet meme and features a Shiba Inu on its logo. The open-source digital currency was created by Billy Markus from Portland, Oregon and Jackson Palmer from Sydney, Australia, and was forked from Litecoin in December 2013,” the token’s description reads on CoinMarketCap.com.
“Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience, since it was based on a dog meme.”
In the past, Dogecoin reached an all-time high of nearly US$0.02 during the Bitcoin boom of 2018, but along with every single cryptocurrency, its price tumbled heavily by almost 90 percent during the proceeding Bitcoin crash. Its price has remained the same up until recent events.
Why the surge?
The sudden price spike is somewhat connected to the folks over at the r/WallStreetBets subreddit.
Proceeding from the community’s success in boosting the stock prices of a handful of U.S. companies – including troubled video games retailer GameStop – and almost tanking a multi-billion-dollar hedge fund in the process, members of another subreddit called r/SatoshiStreetBets have now apparently turned their attention to Dogecoin hoping to emulate the outcome of the GameStop episode, except in the world of crypto.
A post in the r/SatoshiStreetBets subreddit calling for members to help bump up the price of Dogecoin. IMAGE: Screenshot from r/SatoshiStreetBets
And it seems as if r/WallStreetBets also wants in on the action. On January 28, a Twitter account by the name of @WSBChairman (probably not officially related with the subreddit) tweeted: “Has Doge ever been to a dollar?”, signalling the community’s new focus on bumping up the value of the coin to unprecedented new heights.
Has Doge ever been to a dollar?
— WSB Chairman (@WSBChairman) January 28, 2021
Adding to the buzz, Tesla co-founder and CEO Elon Musk has tweeted his enthusiasm for Dogecoin multiple times in the past, and the latest voice-out by the meme-loving techpreneur will no doubt serve to create more momentum for current events.
— Elon Musk (@elonmusk) January 28, 2021
Where will the dog go next?
In addition to the with price hike, Dogecoin’s market cap has also experienced a similar boom in terms of overall market cap, now sitting eighth in the rankings of the top cryptocurrencies by overall market value.
But as for what happens next, no one knows as to whether Dogecoin will see its price climb even higher, or whether it will experience a crash. The latter is something that surely many will expect, considering that the coin doesn’t offer much in the way of real-world practicality.
But all the same, no one could have predicted the surge in GameStop stock prices just a few days ago, so it’s impossible to say what the forces behind this new phenomenon will conjure up next.
If the news of Dogecoin has got you feeling excited about investing, be sure to do your due diligence before performing any sort of investment opportunity, especially ones that involve crypto – a space containing incredibility high volatility and risk levels to match.
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Cover image sourced from The Daily Chain.
ที่มา : Mashable