Tuesday (April 20th) was supposed to be a kind of red letter day for Dogecoin, the cryptocurrency that has its roots as an internet sensation – mainly a joke – and has become a phenomenon.
You know the one – with the dog that looks crooked. It started as a wink and allusion to the rise of cryptos in general in 2013, and now it’s a figurehead for the abundance and opportunity that shaped the space, particularly as Bitcoin and as Coinbase, the crypto exchange, has gone public.
And since Tuesday the enthusiasts have gathered and tried all day to get the price down to $ 1. At this point, with a generally bad day for the stock and crypto markets, the target seems elusive, at least in terms of sticking to that level. After hitting just over 42 cents, Dogecoins recently traded at around 35 cents, down about 10 percent from the day.
However, given the 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, depending on where you look, there are indications of at least a certain attraction 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 using BitPay wallets (Newegg has been accepting crypto payments for a number of years).
But despite the occasional hug from traders, it’s important to note that Dogecoin still largely exists as an integral part of meme culture and social media – where GameStop and other advertisers have shot up and down depending on the day – and from the mercury moods of the speculators.
And here’s a sign of how far the speculators have gone: Dogecoin’s market cap is roughly the same as Ford’s, and while the two “stocks” couldn’t be more different, consider the fact that market capitalization is an approximate indicator of profitability can be. Perseverance and, well, 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 excitement of Dogecoin seems to come from 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 hug, where Tesla, for example, said that you can buy a car with Bitcoin but not Dogecoin – is getting crowded. The fear of missing out is powerful. And the fun of being part of the scene is great too. But also panic, which have a cascading effect and could accelerate with every significant drop in prices. With no real basics, you’re really only having fun, albeit with real money.
And it’s all fun and games … until someone loses their shirt.
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