/https://specials-images.forbesimg.com/imageserve/607b5da259d35fdb42a69505/0x0.jpg "Dogecoin continues its price increases of 3000% – for the time being")
Dogecoin, the rising cryptocurrency that was created as a ‘joke’, has so far this year boosted a staggering 3,000%.
The dogecoin price, which started climbing in October last year when the latest bitcoin bull run was underway, added almost 400% just this week – it screams in the top five of the cryptocurrency with its market capitalization of around $ 50 billion.
Dogecoin mania has taken the world by storm this week, but some bullish investors are predicting that the rise in the dogecoin price could continue and that the memecoin has so far managed to maintain its big gains.
Dogecoin, the tongue-in-cheek cryptocurrency created as a ‘joke’, has risen to never seen before … [+]
STRF / STAR MAX / IPx
The latest dogecoin craze, spurred on by Telsa billionaire Elon Musk, has been driven primarily by retailers hoping to get rich quick and has sparked warnings if those jumping on the dogecoin wagon could burn. Uphold, a cryptocurrency exchange in California, reported that the number of users buying dogecoin has doubled in the past week.
“The rise of Dogecoin is a classic example of a larger theory of folly, dogecoin investors are actually betting that they will be able to pay out money by selling to the next person who wants to invest,” said David Kimberley, an analyst at the British Freetrade trading app Freetrade, said in an email comment.
“People buy the cryptocurrency, not because they think it has significant value, but because they hope others will pile up, raise the price and then they can sell and make money fast. But if everyone does, it is “The bubble will eventually burst and you will be short-changed if you do not arrive on time. And it is almost impossible to say when it will happen.”
Others compared dogecoin to GameStop, the video game retailer that saw its share price skyrocket this year when retailers organized via Reddit, Telegram and Discord to raise the price.
“In the same way as the GameStop frenzy as a fighting game of Wall Street versus The Little Guy, dogecoin is being played as a battle against established crypto giants like bitcoin,” said CEO Nigel Green. of deVere Group, said in an email comment.
“We can expect many novice retail investors, who may not have the financial resilience, to burn into the dogecoin frenzy in the same way as with the GameStop one.”
The dogecoin price has risen by almost 400% this week alone and is now hovering around 30 cents per … [+]
Coinbase
Although dogecoin is based on bitcoin’s decentralized blockchain technology, there is little developer activity and a handful of people own the vast majority of dogecoin tokens in circulation.
“It is very difficult to compare dogecoin with bitcoin, which works on cutting-edge technology and has a limited supply, which provides valuable features, among other things,” Green said.
Last month, data revealed that an anonymous person or group controls approximately 28% of all dogecoin tokens.
“It only takes one person to dump all their belongings for the entire market,” Kimberley added.