Longtime cryptocurrency bull Mike Novogratz has warned against short-circuiting Dogecoin (DOGE), citing retail investors’ interest in the meme cryptocurrency, CNBC reported on Tuesday.
What happened: The CEO and founder of cryptocurrency investment company Galaxy Digital Holdings Ltd. (OTC: BRPHF) told CNBC’s Squawk Box that while it’s “dangerous to be short” on Dogecoin, he will not have a long position either.
Novogratz mentioned the importance of retail investors in Dogecoin, pointing out that Dogecoin speaks much of the same movement as GameStop Corp.. (NYSE: GME) did it because of the crazy excitement of many young investors around meme assets.
See also: How to Buy Dogecoin (DOGE)
‘Retail has the middle door in many ways. They do not give up with GameStop. “They are not giving up on dogecoin now,” Novogratz said.
Novogratz also noted that although Bitcoin (BTC) and Dogecoin have held strong meetings this year, they differ greatly in design and risk profiles.
Bitcoin, launched in 2009, is the largest digital currency in the world and growing in adoption. On the other hand, Dogecoin was started as a joke in 2013 and literally has ‘two guys who own 30% of the entire offering’, Novogratz added.
Why it matters: Dogecoin started attracting attention around the Reddit-fueled GameStop stock trading frenzy earlier this year. The Shiba Inu-themed cryptocurrency, which hit an all-time high of $ 0.4377 last Friday, has now emerged as the treasure trove of retail investors.
See also: Do you want Dogecoin short? Unthinkable – but here’s how you can
Dogecoin’s dominance of the cryptocurrency market has risen to almost 2% and it is now the sixth largest cryptocurrency by market capitalization according to CoinMarketCap data. However, the altcoin has fallen 19.2% over the past 24 hours, trading at $ 0.3083 at the time of going to press.
Dogecoin also receives increased support from large corporations, including Conagra Brands Inc. (NYSE: CAG), which uses the joke cryptocurrency for marketing purposes.
On Monday, candy brands Snickers and Milky Way promoted the cryptocurrency before ‘Doge Day’. Online technology retailer Newegg Inc. said he would now accept Dogecoin on his website as an official payment method.
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