Dogecoin is a cryptocurrency which got its from the "Doge" Internet meme that features Shiba Inu dog as its logo. What started out a joke, it now has it’s own online community and is ranked the top 50 coins according to Coinmarketcap.
Jackson Palmer is an Australian entrepreneur created Dogecoin as a joke. However, what started out as a joke, grew through social media, has an active community and eventually made its way onto Binance. Despite Binance's strick listing policies, Changpeng Zhao aka CZ said despite the coin not having a lot of technology behind it, the community was too large to ignore.
Dogecoin has rallied over 84% in just seven days amid a Bitcoin market consolidation. In less than 48 hours the price of the cryptocurrency that is associated to a rather controversial meme hit highs of $0.0060 from levels marginally below $0.0025. While gains towards $0.01 became difficult to sustain, DOGE/USD is containing the gains above the short term support at $0.0040.
The dogecoin price rally was caused by a TikTok video that got 1 million views. If you been living under a rock, TikTok is the Twitter of videos. TikTok videos are usually short, usually involve music and cater to the younger generation. TikTok user James Galante put out a "Lets Get Rich Video, which caught fire, was picked up by TikTok's algo and the video caught more fire.
Invest just $25. Once the stock hits $1, you’ll have 10 grand [$10,000]. Tell everyone you know...that was the message behind the video which lead to the pump in price. Dave Portnoy, founder of Barstool Sports and recent daytrader said the nonsense was a pump and dump and defined the situation as a "bubbly rosé." But it got enough attention that the Dogecoin got listed on Bitfinex.
Although the Dogecoin and it's community is all about fun and games, according to Jay Hao, CEO of crypto exchange OKEx, Dogecoin is no joke. Dogecoin is actually from a 2013 fork from Litecoin. And now Dogecoin is being used for tipping on Reddit and Twitter and is demonstrating use cases for micropayments.
But for now, Dave is right, this was a definitely a bubbly rose as price is retracing back to the origin of the strong move higher several days ago.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.