The price of dogecoin is up by 80% in a few hours. The interest of investors is surging in DOGE after a social media frenzy.
The power of social sentiment is evident from the surging price of DOGE. The $1 milestone seems too far away but you can never be sure about the price movements in the crypto market.
What is Dogecoin?
Dogecoin is a cryptocurrency in circulation since 2013. It has been created as a free and instant payment system by two software engineers. There are more than 127 Billion Dogecoin in circulation already.
Rise to Fame:
The coin first rose to fame in the last month when Elon Musk, the CEO of Tesla and the world’s second-richest man, mentioned it on Twitter.
One word: Doge
— Elon Musk (@elonmusk) December 20, 2020
Subsequently, the topic became a trend on Twitter. At that time the price of dogecoin immediately rose by 20%. The cycle seems like repeating itself.
This time around the cause for the pump was a tweet by a parody account @WSBChairman who is posing to be the moderator of Reddit group Wallstreetbets.
Has Doge ever been to a dollar?
— WSB Chairman (@WSBChairman) January 28, 2021
Dogecoin’s mention on Twitter increased following the tweet and the price jumped up by 80%, which is significantly greater than the last time. #dogecoin is trending on the second number in the United States at the time of this writing. Many crypto enthusiasts are appreciating the development of DOGE from ‘meme coin to dream coin’.
The pump is a reminder of the fact that social sentiments have a far greater impact on the value of crypto-asset than any other asset class. This manipulation is a con of the crypto market. Moreover, financial regulators criticise digital currency for its eruptive moves.
The Reddit group, Wallstreetbets, has been previously responsible for the jump of Gamestop stock price by 1,600%.
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