TL;DR Breakdown
- Dogecoin may be a bubble fueled by Musk’s tweets
- Cuban joins the Dogecoin promotion and attracts more investors.
The cryptocurrency that has set the trend in recent months due to its high value and exponential increases is Dogecoin.
It is necessary to know that before April 20, the day of correction in the stock market, the asset rose 8,736%. This value rose from January 1, achieving a 500% profit in April.
Thanks to this rise, the asset obtained a capitalization of $37 billion, achieving the eighth position in CoinMarketCap. However, the skepticism that haunts cryptocurrency is imminent.
These doubts about Dogecoin occur because of its bad reputation for awarded as the “meme currency.” Even Doge could not change its reputation, which has impeded its growth. However, with Elon Musk and his trustworthiness, the perspective towards Dogecoin changes.
Dogecoin and its bubble value
The Doge value bubble has also raised the spirits of novice investors, a bubble that will burst. Jim Cramer, the Mad Money host, recently brought up the topic on a blog.
According to Cramer, the likes of NFT and Dogecoin are the sides that make up cryptocurrencies, referring to the bubble. He noted that:
“Dogecoin started as a joke, and they stay that way, only there are more people involved.”
He further added:
“I think a serious market would be a market to bet on Dogecoin because the coin is pointing towards sports betting. Why not? It’s a sport for me, so why don’t I bet? “
These statements by Clamer were only part of the interview he had recently. Simultaneously, while holding onto Dogecoin as a “joke,” Clamer also said that “Not all decentralized currencies work the same.”
CoinShares Chief Strategy Officer Meltem Demirors said something similar to Clamer:
“It’s a classic bubble, in my opinion. My company does not analyze Dogecoin because it is not on the market”.
Clamer and Demiror’s statements are not the only ones. There is evidence to support these comments.
Note: It is estimated that 1% of the Doge address has 94% of its total supply, while a single address has 27%. Likewise, the featured articles suggest that short-term holders increased from 165 thousand to 582 thousand from December to April of this year.
The bubbles makers
Unsurprisingly, Tesla SEO Elon Musk has used Twitter as a resource to power the digital asset.
At the beginning of the year, the businessman tweeted about Dogecoin 25 times, causing a trend on the cryptocurrency. The most recent tweet was “The Dogefather.”
When he made that publication, Doge increased by 25% in less than 4 hours, going from $0.26 to a value of $0.32.
Although it is not the only statement of Musk because he has even damaged the image of songs of the group Baha Men to highlight the asset. This occurs as he affirms his seriousness by attempting to place “Doge on the moon literally.”
These are not the normal developments that focus on digital assets. But it is something very similar.
Tesla SEO is not alone because Mark Cuban has said that Dogecoin has no implied value. However, he not only took the asset, but he also defended it.
Although both executives have highlighted that they do not own Doge, this has generated fame in the asset. This is a bomb that could at some point explode, leaving many investors affected.
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