Dogecoin is a cryptocurrency born as a joke in December 2013 whose logo is represented by a famous internet meme, an image of a Shiba Inu dog.
The Dogecoin phenomenon on Tik Tok
Among the latest in an endless series of TikTok trends, the one in which users are encouraged to invest in the currency has appeared, with the assumption that you can earn a lot if the price of the coin reaches $ 1.
It currently stands at $ 0,0039. According to OnChainFX, a cryptocurrency price monitoring site, Dogecoin has increased by more than 40% in the past 24 hours.
Dogecoin's official Twitter profile has posted a notice inviting investors to be cautious, writing: “Be aware of the intentions that people have when they direct you to buy things. None of them are ready to provide financial advice. " The market capitalization of the token reached nearly $ 500 million.
Naive action or manipulation?
Dogecoin's promotional videos have been running for days on the platform known for its short but eccentric and captivating video compilations. Some Dogecoin fans say that the whole phenomenon could be a "crazy idea", while others have been more reckless, pushing users to "get all rich" and to "tell everyone you know etc ...".
Justin Litchfield, Chief Technology Officer of Austin, Texas, at ProChain Capital, a crypto hedge fund, says there are two trends at stake: the first is made up of hordes of people stuck at home who have bought shares on apps such as Robinhood and which could now also delight in cryptocurrencies.
The second is the not new phenomenon of Dogecoin investors who come together to make a "change". A similar thing already happened in April 2019, when the cryptocurrency saw double-digit earnings encouraged with similar dynamics. "The same currency was launched as a joke to make fun of the financial system, which is a bizarre thing to think about," said Litchfield.
Altcoins are decoupling from Bitcoin
Although Bitcoin - here you find the quotation of digital currency in real time -, the largest cryptocurrency, has always been traded within the same, narrow price range in the last month, many alternative currencies or altcoins have suffered significant tears, causing the return of another " alt season "in which the smaller tokens see an increase in attention.
Zcash, for example, has gained over 100% since mid-March. For Mati Greenspan, founder of Quantum Economics, Bitcoin's trajectory has been closely tied to the moves of the S&P 500, while the rest of the cryptocurrency market is "breaking away" from it.
Cryptocurrency traders, like their counterparts in the securities sector, are becoming very selective. "It seems that people are eager to speculate at the moment - and there are a lot of stimulus funds in the system [governments] and all this stimulus is going to invest," said Greenspan. "It would make sense that much of this came from the retail market."