DOGE coin is dipping very rapidly and is close to junk status and even though it’s a meme currency, this is still bad for investors.
There was a lot of social media chatter about DOGE coin this weekend, especially after Wall Street Bets turned one of their meme stocks into a millionaire maker over the matter of weeks with their short squeeze strategy. But don’t expect it to pay off like that even though it is trending on social media. Here is why?
There’s a lot of money to made online by trading cryptocurrencies whether you’re an investor or a momentum trader. Now there are a lot of first-time traders and newcomers who want to get rich quick after hearing about the GameStop stock Short Squeeze and they are blindly buying and trading stocks based on Twitter and Reddit trends. This is the case for DOGE coin.
DOGE coin has been dead since it’s conception in 2013 and that is because it was designed as a meme. Throughout the years the cryptocurrency has remained under 10c, hitting an all time high this weekend of USD$0.09. But then social media influencers revived the meme by tweeting about the meme cryptocurrency and were encouraging their fans to buy at USD$0.04 with the promise that it will hit USD$1.00.
Now, a lot of people still hyped from the GME short squeeze were looking to get in early on the next big get rich quick scheme and they rushed to buy DOGE coin. I mean, if the rumours were true, then you could turn USD$100 into USD$1000. Sounds too good to be true, right? That’s because it is.
A bunch of newcomers rushed to buy DOGE coin at USD$0.07 expecting the cryptocurrency to “got to the moon” so to speak, but almost immediately after the initial rush the value plummeted to USD$0.02 meaning that a lot of people just lost more than half of their money.
Influencers scammed their fans
The social media influencers who encouraged their fans to buy DOGE coin just scammed their fans because they knew that there is absolutely no chance that the DOGE coin would reach USD$1.00 and won’t unless things change drastically.
While ordinary people like you and me lost their investment in DOGE coin, the social media influencers who boasted about the cryptocurrency doubled theirs. They virtually stole money from their fans through a controversial and borderline illegal strategy called Pump and Dump.
Pump and dump is when investors attempt to inflate the value of their investment by hyping it up. When more and more people buy into the currency the value goes up and up. But the more experienced traders know the true value of the currency but mislead others into believing that it can be worth a lot more if just more people buy into it ultimately “pumping” the value.
Then, when they believe the currency has peaked, they sell their stock, or “dump” it, turning a nice little profit off the backs of their fans. If those who pushed the DOGE coin would have really believed it was going up they wouldn’t have sold so quickly. But how did they know?
FAIL: DOGE coin is dodgy
DOGE coin released as a meme all the way back in 2013. It was never supposed to be a good investment just more of a novelty item that you could still use to trade at limited vendors. 8 years later there is only handful vendors and traders that deal with DOGE coin, one of them being Kraken.
Kraken is a US-based cryptocurrency exchange, founded in 2011. The exchange provides cryptocurrency to fiat trading, and provides price information to Bloomberg Terminal. As of 2020, Kraken is available to residents of 48 U.S. states and 176 countries, and lists 40 cryptocurrencies available for trade. They are huge and they are reliable. They also offer some of lowest rates when it comes to trading.
When DOGE coin started trending on Twitter their service completely crashed. It halted to a complete stop and millions of people couldn’t complete trades for many hours. But this wasn’t Kraken’s fault. Kraken, to my knowledge, is one of only two exchanges that support DOGE coin. So, influencers with millions of followers told people to buy DOGE they flooded their services.
Secondly, not many wallets are compatible with DOGE coin. After all this cryptocurrency was developed 8 years ago, and it hasn’t exactly been popular since then.
What needs to change?
More mainstream traders and exchanges need to be DOGE coin compatible for there to be even the slightest hope that the coin reaches USD$1.00. But, if that’s the realistic target investors see it getting to, it is very unlikely that any reputable exchange will be interested in trading it.
However, it would certainly help if the cryptocurrency was available to more people. But the thing is, is that there is absolutely no marketing behind the coin because it literally is a joke.
The outdated wallet is also very unreliable and even the app lets you know that. People have reported that DOGE coins have disappeared from their wallets or just not shown up at all. That could be because the actual wallet app has been deprecated. Luckily there is an alternative called Cryptonator Wallet. They claim to still support DOGE coin but we have not personal tested.
If you want to get into DOGE coin without gambling away your hard earned money you still can. The official website allows you to claim free DOGE coins every 3 hours. However, they will not pay out until the you’ve earned at least 5. But it is a process you can repeat indefinitely (or until their balance is drained).