As crypto markets keep breaking over bearish point, interest are beginning to shift to it. Instead of investing in gold or land, most investors are beginning to invest in digital currency of the 21st century.
Of more importance is the seemingly greater value of Dogecoin. As a digital currency investor, you’ve probably heard from one or two of your associate that Dogecoin is one of the best 5 coins to invest in.
Wait! An investor does not put his money in everything that yields interest, he tries to analyze the risk and profit after a full knowledge of how the investment works.
Reading this article may be your first step to getting a full knowledge of Dogecoin before you put your bucks into it.
Dogecoin was created as a joke
Dogecoin is a digital currency officially launched in December 6, 2013. It was invented by software engineers, Billy Markus and Jackson Palmer as an alternative to the bank by creating a payment system that was instant and fun.
Its quality of being a joke meme can be seen in its name and logo.
‘Doge’ is an internet meme that became popular early 2013. The meme features a shiba Inu, a breed of Japanese hunting dog.
The coin was later launched in December after the Doge meme became popular on the Internet.
The relationship between Dogecoin and the meme are glaring as the coin was named after the doge meme.
Also, the coin uses the head of the Shiba Inu dog as its logo. This explains the reason Dogecoin is referred to as the ‘joke’ or ‘meme’ coin.
Dogecoin once experienced a huge theft
Cyber thefts and attacks are not unknown to many in the internet space. On December 25, 2013, the coin experienced a major theft when millions of Dogecoins were stolen after a hack on the Dogewallet.
The hacker gained access to the platform’s file system and was able to send and receive Dogecoin at a single address.
The theft affected many of the coin’s investors as it sparked outrage on Twitter.
Through the ‘Savedogemas’ initiative, the Dogecoin community started donating to those that lost their coins through the theft to mitigate their loss. All lost coins were paid for by the initiative approximately one month later.
Dogecoin does not increase by leaps and bounds
As stated earlier, the coin was officially launched in December, since then, it has failed to reach up to $1.
Despite being launched before other coins, it keeps moving between pennies and cents without making a considerable move higher.
Its movement is opposed to that of Binance coin and Etherum that were launched after it which are now part of the five best coins.
It is usually pumped by celebrities/ events
The meme coin has a standing history of being pumped by celebrities/ events then crashing after a short period.
In 2017, the price increased by 1,890% from $0.00021 to $0.0042 and then crashed later when crypto market experienced a fall.
In 2018, an invention of the Dogecoin/Ethereum bridge test lifted the price of the coin by 173% which later led to a crash after Ethereum, the coin that lifted it, crashed. In July 2020, Tiktokchallenge on Dogecoin increased the price by 35%.
Fast forward to 2021, the Wall Street Bet, a group of investors that pump market price, shifted their gaze to Dogecoin and started pumping its price.
This was fuelled with tweets from Tesla Coach, Elon Musk. Through the fueling, Dogecoin reached an all time high of $0.087.
Other celebrities like Snoop Dogg and Tiger King celebrity, Carole Baskin have recently tweeted about the dog-themed currency.
Expert says Dogecoin is doomed to crash
As interest in Dogecoin increases, experts are cynical that the meme coin is doomed to crash as it has always been.
A coin that is controlled by certain groups of people is subject to their pump and would fail when it is no longer being pumped.
Nic Carter, Co-founder of Castle Ventures and data firm coin metrics tells CNBC that Elon Musk’s spurious tweets are quite discomfiting as it is mainly a vehicle for speculations.
He further said that more investors will lose money in the coin as there is no interesting technology in the coin.
While some people are optimistic about ‘cashing out’ when the price of Dogecoin increases, Experts keep analyzing the effect of the coin rise and fall.
Rather than invest based on Musk’s pumping tweets and speculations, it is better to analyze the circumstances before investing.
Don’t forget that Musk once tweeted to pump the price of Bitcoin by including same in his bio which was later removed after his job was done.
All forms of pumping only have effect when people invest, speculations on rise will be based on nothing.
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