The Dogeday became a shock for users who had dreamed of instant profits. The alluring meme cryptocurrency seduced many, who entered the market without acquiring knowledge.
According to Nic Carter, co-founder of Coin Metrics, around 872 million DOGE were back in circulation this week. Those who had kept the cryptocurrency for at least five years decided to sell their holdings for a profit. They expected to obtain about USD 287 million amid a bullish run in the price of the crypto asset.
Last week, the cryptocurrency was trading at 0.44 after achieving a 100% growth that led it to reach a new all-time high. Only in April, there was an increase of 6,900%, which aroused the interest of many users. They had kept a reserve of a crypto asset that did not cost more than 5 cents on the US dollar.
After this week’s massive sale, the price of DOGE has dropped by as much as 19% below USD 0.29, according to data from CoinMarketCap. However, it remains more than 100% above its price last week. The decline does not cause any surprise in the ecosystem, much less for those who have already warned it.
Nic Carter warned that the Dogecoin bubble will soon burst as the crypto asset is a vehicle for speculation. In an interview on the CNBC news channel, he said that users who invest in the cryptocurrency will lose money. He explained that it offers nothing in the long term, given that it does not have much in terms of technology.
Charles Hoskinson, the founder of the Cardano blockchain, believes that the meme cryptocurrency poses a risk to the entire industry. Additionally, he said that regulators will transform the ecosystem when the bubble finally bursts. “Do not buy Dogecoin and get out of it,” he recommended. “If you made money with this cryptocurrency, that is great! However, get out of there because it is a bubble. It is not real and there is nothing sustainable there.”
Dogecoin Is a Meme Cryptocurrency that Makes People Cry
CoinMetrics analysts consider that social media and the support of millionaires have promoted DOGE. Groups on Twitter, TikTok, Discord, Telegram, and Reddit drive its price higher.
Some fans of the cryptocurrency turned to social media to invite people to celebrate the so-called Dogeday. The day scheduled for the celebration consisted of buying as many coins as possible until the price rose to 1 US dollar. However, when DOGE began to lose value, the celebration was only on the side of those who had gotten rid of the cryptocurrency.
Some new users hoped to cross the USD 0.50 barrier so that they would make a profit. Meanwhile, others were shedding the funds that they had kept for at least five years, as Carter had warned. Therefore, the invitation to reach the USD 1 mark became a shock for many DOGE fans. They aspired for a gift in the form of quick winnings or instant fortunes.
Social media users are familiar with these formulas, called Pump and Dump, to catapult the price of an asset. An investor or group of investors uses this market manipulation scheme to increase the price of an asset that they own and then sell it en masse.
By Alexander Salazar
