Dogecoin soars and just set a new all-time high. It has reached more than a 10x in gains since its price in April. If you invested $5000 in Doge at the beginning of last month, you would now have $50,000!
The funny thing about Doge is that it has no fundamentals. There is nothing to the value proposition of the token. Meaning, no utility. And many coins with strong fundamentals and innovative tech have not been so fortunate. This upsets a lot of people in the crypto space – they are concerned about how this will effect the long-term health of the cryptocurrency industry.
The hype around Doge – is it toxic?
And this is a valid point. It is good to have newcomers to the space. And no doubt, Dogecoin has attracted many folks who know nothing about crypto. Some don’t even know the word cryptocurrency, but they have heard of Dogecoin. However, the negative impact this could bring to the space is toxic. There are many other meme coins like Dogecoin which have also been making record profits.
However, the reason this trend is bringing toxicity to the crypto space is that many of these meme coins are scams. Some of them have no locked liquidity. This means that you could be stuck – unable to trade your coins back if something goes wrong. Then the price plummets or the owner of the coins walks away with everyone’s money. This has happened on many occassions so be very careful when looking at the projects.
Some say that Dogecoin is good for crypto because it attracts newcomers to the space. But are they coming to crypto for the wrong reasons? Time will tell how meme season and Dogecoin will effect the overall crypto market.
Will Dogecoin climb to $1?
According to Cointelegraph.com, Dogecoin is up more than 10,000% since last year. It has certainly seen a lot of growth. Now that Doge has just more than doubled in prices since only a week ago at .26 cents, $1 doesn’t seem to far away. And the longer that Doge keeps soaring, the more attention it gets. Thus, it seems unstoppable.
And now that Dogecoin is almost at 60 cents, $1 seems imminent. However, there are some factors that could flip the fate of Dogecoin very fast. More than 30% of Dogecoin belongs to a single person and the other 18% belong to 12 other holders. If all of these whales decided to dump their bags, it would be catastrophic for the price. It could be that these whales decide to dump once it does hit $1. Or it could be that they never do. Who knows?
But it is suspicious. One wonders if these whales might be manipulating the market – and once their satisfied with the money they’ve made – the fate of all Dogecoin holders would be entirely upon the mercy of the whales.
Is Dogecoin going to soar past a dollar and go straight to $10 – or is it the biggest scam in crypto? Maybe both. But $1 certainly doesn’t seem to be far away at all from here.
This article is not financial advice. Please always do your own research before investing in crypto.
Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.