“Barking at the Moon”: Dogecoin is flying 600% in a week and triggers alarms about forming a bubble

Published:

April 16, 2021 23:18 GMT

This cryptocurrency came out as a joke, and it has sneaked into the “ top 5 ” of cryptocurrencies due to its market cap.

The value of dogecoin, the cryptocurrency based on the shiba inu dog meme, is seeing a kick in the stratosphere, with growth of over 600% recorded in one week and 200% in the last 24 hours, according to data de CoinMarketCap.

The currency, which arrived at some point on Friday at $ 0.43 a unit, increased its capital by $ 40,000 million to $ 55,000 million, which allowed it to Storming the “top 5” Of cryptocurrencies by market value.

Launched in 2013 as a joke on other cryptocurrencies, Dogecoin has gained recognition More than 8000% So far this year.

Some attribute Dogecoin’s impressive growth and latest debut to tweets from Tesla CEO Elon Musk. This Thursday the billionaire posted a mysterious message –“Doug barks at the moon.”– which, apparently, copies the popular slogan for cryptocurrency enthusiasts “To the Moon,” which is used to express optimistic feelings about one or another currency.

Musk, his company invest $ 1.5 billion In Bitcoin and what ad The Accepting payments In the Tesla EV major currency, he tweets that dogecoin as his favorite currency ‘People’s currency’. However, many cryptocurrency investors caution that these types of data should not be taken lightly.

Nick Carter, co-founder of Castle Island Ventures, describes Dogecoin as a “speculative vehicle” and warns that many retail investors “They will lose money with Dogecoin”.

According to British Freetrade investment platform analyst David Kimberley, “dogecoin is a classic example of Stupidity theory“.

“People don’t buy the cryptocurrency thinking it has any great value, but because Wait for the others to joinThey pay the price, then they sell everything and make a quick buck. ” He said CNBC.

Kimberly warned that when everyone else does, the bubble must eventually burst and “one will be tricked.” If it does not come out on timeWhile it is almost impossible to say when this will happen. “

This is more likely to happen when a small group of players holds a large portion of the total ‘Coins’ in circulation. “It assumes that it will be sufficient For one person to filter all holdings To completely smash the market. “

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