The Dogecoin Fever In India: The Worst Nightmare For The Cryptocurrency Traders

The doge rush has finally arrived in the Indian cryptocurrency space!

Named after a popular meme (based on the Japanese dog breed Shiba Inu), the value of the Dogecoin cryptocurrency token has increased tenfold in the past three months. Market capitalization has been nearly $ 80 billion as of Thursday.

On Wednesday, WazirX’s Binance-backed Doge / INR trading slowed the entire system as there was record-breaking traffic on those platforms. And this was followed by the indignation of the Indian Twitterati, who complained about the failure of Doge deals. The hashtag ‘#WazirXScam’ was soon published on the social media platform for microblogging.

For those who want to understand, we received over 30,000 new tickets overnight.

Although we have a large team and are expanding, it is not possible to respond to these many tickets immediately

Please be patient, our team is working to solve all problems.

Many tickets are solved automatically. https://t.co/cueTdtAkEJ

– Nischal (WazirX) @ (@NischalShetty) May 6, 2021

During his appearance on Saturday Night Live, Elon Musk, Tesla and the SpaceX CEO hinted they were talking about Dogecoin, prompting retail investors to invest in the meme-derived crypto asset.

Nischal Shetty, founder of WazirX, said the company is currently busy redesigning the platform to handle the expected May 8 surge. That could easily double or triple from what the platform saw on Wednesday.

In addition, Shetty said that he estimates that 600 rupees worth of Dogecoins have been traded on the WazirX platform in the past 24 hours. Even so, there are still some Indian crypto trading platforms like ZebPay that are turning away from Dogecoin listing despite investor interest.

When asked about this, Viram Rangala, COO of ZebPay, mentioned that the company might list the token in the near future, but before that he wants to make sure it’s not the 21st century tulip mania (one of the most notorious market bubbles and All-Time Crashes in the 17th Century)

Interestingly, unlike other popular limited edition cryptocurrencies that make it a store of value, Doge’s use cases are largely limited to tips made available on Twitter and Reddit quality content.

On Dogecoin’s official website, the token is described as “the open source peer-to-peer digital currency preferred by Shiba Inus around the world”.

According to Coinmarketcap.com, there are currently a whopping 129 billion Doge tokens, and more Dogecoins can be mined. Even so, the lack of regulation regarding Crypto Doge makes it an unstable investment that is very similar to other cryptocurrencies.

Nithin Kamath, CEO of Zerodha, one of the oldest online brokerage companies, said he couldn’t understand the persistent high with Dogecoin. He also expressed concern about the numerous red flags, e.g. B. that no checks will be made and the likelihood that the coin is a “pump and dump” system.

Kamath said it would be best to ensure that no more than 1-5% of their net liquid assets are allocated to assets that are highly speculative in nature.

All in all, it is clear that crypto fever has finally taken over India, especially traders under the age of 25, and it seems like it will only continue to explode in the future. We will keep you informed of any future developments. Until then, stay tuned.

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