Impressive. So pump. Buy a lot.
Day traders on the TikTok viral video app are encouraging people to speculate about a joke cryptocurrency called Dogecoin. Based on an old Internet meme – an overly sincere and bizarre grammatical Shiba Inu dog – the digital coin was developed in 2013 as a Bitcoin spinoff, whereupon it quickly became known as a gag.
The gadgets of the cryptocurrency pumps seem to be working, at least for the time being. The price of Dogecoin has almost doubled since July 6, and has risen 95% from $ 0.0023 to $ 0.00448, according to OnChainFX, a cryptocurrency data tracker.
The price of Dogecoin peaked at $ 0.013 in January 2018 before crashing immediately.
The Dogecoin TikTok challenge
It seems that a flood of hypers in the domestic market is behind the urge to overdo the cryptocurrency.
"Invest in Dogecoin, make me rich," wrote a pumper. "You can't stop us all," another encouraged. One more thing: “It's worth it. I swear #stocks #coins #dogecoin #money ”
TikTok user @ jamezg97 uploaded one of the earliest Dogecoin-pumping TikTok videos related to the current Bonanza at the end of June. "If this ever hit a dollar, I would be charged. Everyone invests so that we can all get rich," he wrote.
Pumping has increased since then. In a recent video that has had nearly 800,000 views since it was uploaded last week, @ jamezg97 leads its audience through the math of speculative betting.
"Let's all get rich," he says potential cryptocurrency buyers. “Dogecoin is practically worthless. There are 800 million TikTok users. Invest only $ 25. Once the stock hits a dollar, you have 10 giants. "
At the end of the video, a Shiba Inu drives a rocket ship that is on a price table that indicates a rapid accumulation of wealth. Then there is a clip of Squidward, a curious character from the Nickelodeon TV show SpongeBob Squarepants, who rolls on his back and conjures up "future".
The Dogecoin account itself urged caution. "Think about the intentions that people have when they tell you to buy things," the administrator wrote in a post on Twitter. “None of them are able to provide financial advice. Make the right decisions for you, don't drive with FOMO or manipulate other people. Stay safe. Be smart. "
Think of the intentions that people have when instructing you to buy things. None of them are able to provide financial advice.
Make the right decisions for you, don't drive with FOMO or manipulate other people.
Stay safe. Be smart.
– Dogecoin (@dogecoin), July 8, 2020
Git along little dogees
In the crazy world of cryptocurrency, Dogecoin could be seen as the equivalent of a junk penny stock.
That didn't stop wealthy brawlers from promoting gambling quickly. Boosters believe that if they can persuade enough people to buy, they can sell at a profit before the price drops again.
It is a classic game of speculation or pump-and-dumping. Buy cheaply, manipulate the price upwards, sell and let another idiot “hold the bag” so to speak.
Unlike Bitcoin, Dogecoin has no upper limit on what it can offer. The number of dogecoins that can come onto the market is unlimited. This feature virtually guarantees inflation, so any Dogecoin is generally worth less over time.
At press time, there were over 125 billion Dogecoin on the market, an average of 10,000 per minute. The large and steadily growing supply of Dogecoin has a tendency to dampen the price movement of speculators.
For comparison: At the time of printing, 18 million bitcoins out of a total of 21 million possible bitcoins were on the market. Six and a half bitcoins come onto the market about every ten minutes. This rate halves every four years until the last bitcoins are "mined" in 2140.
Proponents of "Value Investing", a philosophy represented by Warren Buffett, his leading practitioner, could give this advice to anyone who sees Dogecoin as an investment: Better get hell out of Doge.
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