Dogecoin is a Good Play In the Long Term or Not? The Complete Analysis: With a market worth of $63 billion, Dogecoin has now entered the top four most popular cryptocurrency. The coin is one of the most popular cryptocurrencies in 2021, and the DOGE craze is sweeping the internet.
Retail investors are rushing in to get a piece of the action. But if generating rapid money is your motivation, you might want to take it easy. Especially after finding that Dogecoin was founded as a joke. It was founded by a software programmer, Billy Marcus. That too in just three hours. Doge is still a cryptocurrency.
DOGE Market Manipulation
Elon Musk’s social media remarks regarding the meme-coin have fueled the current Dogecoin boom. It could simply be a result of what people believe as a result of Musk’s views on the coin. The coin’s value plummeted after Musk mocked Dogecoin on Saturday Night Live, calling it a “hustle.” The coin was trading between 60 and 70 cents before the show, but it dropped 40% thereafter. Cryptocurrencies are notoriously volatile, but it’s clear that Elon Musk’s views are influencing Dogecoin’s market.
It all began in January 2021, when Tesla CEO Elon Musk began tweeting about the coin. Musk became a prominent advocate of Dogecoin, which aided in the coin’s price rise.
Dogecoin supporters had been anticipating Musk’s supportive comments on SNL and the following rise in DOGE values. As DOGE suffered a resounding defeat. Given the known volatility of the crypto market, it’s difficult to say that Elon Musk has a substantial impact on the DOGE market, but it’s a factor worth considering.
Blockchain technology presented itself as the cutting-edge technology that would guarantee the security of a revolutionary financial system with its distributed ledger network. However, the industry has still faced its share of security problems, and DOGE has been no exception.
In 2014, Doge wallet was hacked, and about 21 million Dogecoins were lost. The hack awkwardly happened on Christmas day, but the holders were lucky to receive a refund from the Doge community. A Dogecoin exchange called Moolah, created in 2017, also went bankrupt at some point, although it had been a fraudulently created exchange.
The Dogecoin buzz is so strong in the cryptocurrency market that Ethereum’s ATH is barely audible. Dogecoin reached a new high, then fell after Musk’s comments. Many retail investors may see it as a wonderful opportunity to invest in the coin, but the crypto world is never certain.
Elon Musk’s support for his SpaceX project could bode well for DOGE’s future. Anyone intending to invest for the long term may want to reconsider their selection based on historical success.