Dogecoin, the cryptocurrency that started out as a joke a few years ago, is now breaking every record as its stock soars to +800%.
Dogecoin, aka Doge, first appeared in 2013 as a troll. It was created on the basis of a successful meme that was circulating on the internet at the time starring a lovable Shiba Inu breed dog that resembles the well-known Akita breed.
Its ”revival” in recent days is due to the enthusiasm of a Reddit network group called SatoshiStreetBets. Like the #WallStreetBets network, which was behind the GameStop rally, #SatoshiStreetBets is trying to push up the price of cryptocurrencies and it looks like it’s doing pretty well.
Within one day Dogecoin soared to +800% and thus stood at $0.070755 while shortly into the day it hit an all-time high of 0.072330. The cryptocurrency – anecdote added about $7.17 billion to the market capitalization in just 24 hours. Reddit users encourage people not to sell and keep pushing.
Elon Musk and his favorite… Twitter
The billionaire Tesla founder has supported certain shares several times with the help of his favorite social media. One of his tweets is enough to boost their price. The same thing happened with Dogecoin, not once but several times. According to CNBC, in December, Musk wrote on Twitter: “One word: Doge”, the cryptocurrency soon afterward increased by 20%. A few days ago with another tweet he again supported dogecoin.
However, dogecoin differs from GameStop. By buying GameStop shares, compression is created, forcing funds to cover their losses. This pushes the stock higher. Investors borrow shares to sell them in order to buy them back at a lower price in the future and thus manage to make a profit.
But there is no such dynamic shortage of hedge funds in the game of dogecoin. Instead, a group of people tries to push the cryptocurrency as high as possible and thus make money.