Tuesday (April 20) was supposed to be a kind of red letter day for Dogecoin, a cryptocurrency that has its roots as an internet sensation – mostly a joke – and has grown into a phenomenon.
You know the one – with the dog that looks crooked. It started as a wink and a nod to the rise of cryptos in general in 2013, and now it’s a figurehead for the surplus and opportunity that have shaped the space, particularly when Bitcoin took off and as Coinbase, the crypto Exchange went public.
And since Tuesday the enthusiasts have gathered and tried all day to get the price down to $ 1. At this writing, in the midst of a generally bad day for the stock and crypto markets, the target seems difficult to achieve, at least in terms of sticking to that level. After hitting just over 42 cents, Dogecoins recently traded at around 35 cents, down around 10 percent on the day.
Given that coins were trading at around a nickel about a month ago and at half a penny earlier this year, the uptrend has been a whirlwind – now with a market cap that is more than $ 44 billion, according to CoinDesk.
Here and there there are clues, depending on where you are looking, at least some traction that goes beyond the “joke” status of the digital coin itself. In a recent example, electronics retailer Newegg said it would accept Dogecoin as payment through BitPay wallets (Newegg has been accepting crypto payments for a number of years).
Regardless of the occasional hug from traders, it’s important to note that Dogecoin still largely exists as a mainstay of meme culture and social media – where GameStop and other advertisers have skyrocketed and crashed depending on the day – and due to the mercury moods of the Speculators.
And here’s a sign of how far the speculators have gone: Dogecoin’s market capitalization is roughly the same as Ford’s, and while the two “holdings” couldn’t be more different, consider the fact that market capitalization is a rough indicator of profitability can be. Perseverance and commercial presence in everyday life. By holding a stock or an asset or commodity, the owners implicitly indicate that they have a right to the business. But really, the Dogecoin excitement seems to be based on following popular cheerleaders, from Elon Musk (who tweeted about Dogecoin) to Snickers (yes, it’s true). Snoop Dogg, the rapper, was there too.
The Dogecoin trade – because it is really a trade with no real seismic shift of a hug where Tesla said, for example, you could buy a car with Bitcoin but not Dogecoin – is getting crowded. The fear of missing out is great. And the fun of being part of the audience is powerful too. But also panic, which has a cascading effect and could accelerate to any significant price drop. Without real basics, you’re really only having fun, albeit with real money at stake.
And it’s all fun and games … until someone loses their shirt.
Read more about Dogecoin:
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