You asked, now we deliver! We’re happy to announce the addition of Dogecoin – the hype meme coin – to our wide selection of crypto assets. The coin is officially available for trading starting from 13th of May.
Here’s what you need to know about Dogecoin as it continues to spike.
“Dogecoin is the people’s cryptocurrency,” Elon Musk tweeted in February this year. What initially started as a joke based on a 2013 shiba inu meme has grown into a verified and trusted cryptocurrency. It has grown more popular and has returned significantly in the last few months. A lot of this is thanks to social media, especially with Reddit and Twitter and a number of active traders in these platforms.
In fact, Dogecoin’s growth has surpassed and outpaced percentage gains of larger cryptocurrencies like Bitcoin and Ether as it has gone up more than 26,000% in the last six months. However, discussions arise with its longevity and long-term success as it has followed the latest trend of social media-backed digital currencies and meme stocks like GameStop (NYSE:GME). It has become part of another bubble, one with potential to burst at any given time especially with the foundations on which it is nestled upon. Despite this, it is still continuing on its unprecedented growth, with occasional fluctuations expected and nothing out of the ordinary.
The Power of Social Media
On their website, they describe Dogecoin as an open-source peer-to-peer digital currency, favored by Shiba Inus worldwide, with Doge, the Shiba Inu mascot of this digital currency and the star of the meme where this is based. In fact, they claim to be the “fun and friendly internet currency” with a dedicated official subreddit and Discord server. What started as a joke has now grown into a massive cryptocurrency that is backed by a very participative community.
The growth of Dogecoin is the perfect example of the power social media holds even in the trading community. Its growth is literally tied to the gravity of influence the meme has created and the amount of meme traders that participated. Through social media platforms like Reddit and Discord, traders decide to pump the assets they choose – which in this case is Dogecoin, with its ever attractive meme reference –, increase its market value, and attract more traders to invest in it, as well. This further increases the prices and starts the cycle of increasing prices and attracting more traders. The target is most often arbitrary, with no specific reason other than wanting for a certain asset to reach that price because that’s what it is-a meme, but a powerful meme fueled by a community who all think similarly.
A passing meme or a trend here to stay?
Because of the way it’s gaining a following and increasing its prices, the possibility of it being just a passing meme is ever-present. A lot of its characteristics are similar to what an asset bubble looks like and with any bubble, crashes and bursts are expected. But the fact that it is a meme and with the way memes are rising and consistently keeping its pace in the market with younger traders and more community platforms, it is here to stay, at least for now
In the end, it is good to keep in mind that it is still an investment with risks and rewards, regardless of how it was created and whether or not it is a meme. The last few years and recent trends point to a shift in trading culture with the focus on how much power individual traders hold, especially when working together. The question remains on its sustainability however, if there’s anything for sure, it has seen how digital currencies can indeed become the people’s cryptocurrency.
