Sunday, May 9, 2021 08:02 AM (GMT + 7)
Inherently considered a joke in the crypto world, Dogecoin’s sudden growth is an “unbelievable” phenomenon.
Dogecoin, which is often considered a joke among cryptocurrencies, has risen sharply in the past week. According to Coinmarketcap data, the value of each Dogecoin increased from $ 0.34 on May 1 to $ 0.69 as of the morning of May 8.
Dogecoin’s crypto market cap has increased by 25,000% over the past 6 months to $ 86 billion.
During the same period, the S&P 500 was up just 19 percent, while other cryptocurrencies like bitcoin rose 286 percent and Ether rose 698 percent, according to CoinMarketCap. Tesla shares, a market phenomenon, have only risen 56% since last November.
Dogecoin is up 400% in 1 week and a warning about the crypto bubble.
“The joke is going on on Wall Street,” said Mati Greenspan, a well-known US portfolio manager.
Dogecoin was created by 2 programmers Billy Markus and Jackson Palmer by copying the Bitcoin source code, clicking “Bitcoin” and replacing it with “Dogecoin”. It took him just one afternoon to create Dogecoin, Billy Markus said.
In 2013, Dogecoin was created based on a popular doge meme at the time inspired by the dog Shiba Inu. The nearly worthless coin was now one of the top 10 digital currencies on the planet with a market cap of over $ 86 billion.
In 2018, the US Commodity Futures Trading Commission (CFTC) issued a warning about similar “pump and dump” strategies. That’s when a certain cryptocurrency gets hyped through online channels and then more and more people buy it. The people behind this strategy will sell when the price peaks, but many “followers” will buy near the top and lose money when the price falls deeply.
With its high volatility, investing in Dogecoins is risky and their position is easily reversed at any time.
Users should only allocate a small amount of cryptocurrency to a portfolio and always be prepared to lose money. The UK’s financial regulator also issued a similar warning.
The keyword ‘karaoke Sunny’ quickly became the hottest topic on Google on May 8.