- What is Dogecoin?
- Why was there a sudden huge surge?
- What you should do?
The mass adoption of the crypto space and its recognition among various institutions have opened doors for a lot of possibilities. The versatility of cryptocurrency has created a space that the masses want to explore. A classic example is that of the recent 800% surge of the Dogecoin crypto which started its journey as a meme.
The Reddit community surges Dogecoin’s value by 800%!
What is Dogecoin?
Dogecoin is a cryptocurrency invented by Billy Markus and Jackson Palmer, who decided to create a payment system that is instant, fun, and free from traditional banking fees. To do this, the coin featured the friendly face of the Shiba Inu dog from the popular “Doge” meme as its logo. It was introduced on December 6, 2013, and quickly developed its own online community reaching a market capitalization of 5,382,875,412 US dollars on Thursday, January 28, 2021. (Source: Wikipedia)
How the hype was built?
Traders and investors, mostly who do their dealings from home, have many a time piled up on resources and stokes which gets overshadowed by the mainstays. Community members belonging from this category, usually use the Reddit platform for various discussions and piling up on information.
A similar activity was carried out on the Reddit platform where users had discussions on the r/CryptoCurrency and r/SatoshiStreetBets and referenced the efforts by the r/WallStreetBets’ to squeeze out Wall Street shops from heavily shorted stocks and urged people to buy into Dogecoin. (Source: Forbes)
The cryptocurrency; Dogecoin; got the spotlight when the likes of business giant, such as Elon Musk tweeted about a meme showing the cryptocurrency in a potential positive light.
It’s inevitable pic.twitter.com/eBKnQm6QyF
— Elon Musk (@elonmusk) July 18, 2020
The tweet from Elon Musk garnered a 20% rise in the value of Dogecoin in the market.
Robinhood users file a class-action lawsuit against the company after it restricted transactions for various securities
What is the WallStreetBets Reddit group?
The WSB group, the abbreviation of the “r/Wallstreetbets” group, is a longstanding subreddit channel with over 3.5 million Reddit users. The group is used by users to discuss and speculate on trading ideas and strategies.
Has Doge ever been to a dollar?
— The Chairman (@WSBChairman) January 28, 2021
Read more here.
What should you do?
Cryptocurrency doesn’t have a physical or tangible form, it exists purely in the virtual world using blockchain technology, cryptography and computer networks. This digital currency of the future is an excellent investment vehicle for all types of investors. The highly volatile crypto markets are very attractive for ambitious investors who can expect to make fortuitous gains. Hence, the time to shy away from cryptocurrency is long gone.
Also, read Avenues for making money.
CoinDCX along with various regulators and technology companies are monitoring the whole Dogecoin scenario. From Wednesday, January 27, 2021, the Reddit forums had been changed to invite-only. The chat app, Discord had banned the r/WallStreetBets forum to avoid hate speech.
Note: It is advisable to traders or anyone, to invest with sound research and analysis.
Stay tuned to CoinDCX forums for further updates.