Cryptocurrencies are well known for their volatility, that is, the dramatic changes in value. However, the current situation with Dogecoin surprised even those who have been associated with the blockchain asset industry for a long time.
The coin has grown by 800 percent per day, that is, if a person had invested a hundred dollars in DOGE the day before, at the peak of the rate, his investment would have turned into approximately $ 780.
Let’s talk about the situation in more detail – along with mentioning the reasons for growth, Elon Musk’s tweets and other details.
Why Dogecoin grew
And while cryptocurrencies are the focus of this situation, the story should start with stocks. More precisely, the activity of traders from the WallStreetBets channel on Reddit, who the day before began to buy GameStop shares. In this way, they wanted to punish the big Wall Street funds that were shorting GameStop GME shares, that is, they were betting on their fall and making huge money on the crash.
In the end, the victory went to Internet users, who were able to replace the giants of the financial industry. In particular, Melvin Capital closed the position and recorded $ 5 billion in losses. Of course, traders from the Internet community have earned a lot of money on growth, but the authors of the idea in their open letter noted that the main reason for their actions is revenge for the 2008 crisis. And also the impunity of the Wall Street companies that had a hand in it.
Now we move from Reddit to Twitter. One of the main stars in this situation was the user WSB Chairman, who in fact calls himself the chairman of the already mentioned WallStreetBets channel. At the same time, he clarifies that he has nothing to do with him.
Anyway, the account has become somewhat of a leader in the movement against Wall Street funds, which make huge money from the fall of someone’s stock. Elon Musk liked his tweet, trader and entrepreneur Dave Portnoy retweeted the account, and Bitcoin billionaire Tyler Winklevoss followed him. As a result, the account received hundreds of thousands of new followers.
There were 741 thousand of them this morning. However, the indicator continues to grow.
In addition to explaining his motivation in the fight against Wall Street, the man under the pseudonym WSB Chairman also began to mention cryptocurrencies. He did it in a joking manner. For example, he asked, “Was Ethereum once worth 5 thousand dollars”, and Link – a thousand.
The name Dogecoin was also mentioned here. The user mentioned the cryptocurrency yesterday morning.
Was Dogecoin ever worth a dollar?
Here the fun began. Readers took the tweet as a signal to action and clearly decided to buy Dogecoin. In addition, Reddit users were engaged in the same thing, who wanted to repeat the success of GameStop shares using the example of cryptocurrencies. That is, investors started buying DOGE, which seriously affected the value of the cryptocurrency.
As we have already noted, the daily growth exceeded 800 percent, while the exchange rate set a new record at 7.8 cents. It’s funny that at its peak, Dogecoin – which was never positioned as a serious project – climbed to seventh place in the overall coin rating.
According to tradition, Elon Musk added fuel to the fire, who shared the image of the magazine with a dog on the cover. The name of the magazine made it clear that Elon was aware of the situation with Doge. In addition, the entrepreneur regularly mentions cryptocurrency on his Twitter.
– Elon Musk (@elonmusk) January 28, 2021
Alas, some companies tried to spoil the holiday for cryptocurrency lovers. In particular, the Robinhood trading platform suspended trading in the DOGE coin, which caused another portion of hate among users. Prior to this, the site also banned buying GameStop shares, because of which it may face litigation – at least traders insist on this.
The rage of users took its toll on the platform’s reputation. They gave more than 100 thousand minimum ratings to the app in the store, due to which the overall rating dropped to 1.1 points.
With the rise in price, Dogecoin has become the most mentioned cryptocurrency on Twitter. The number of publications about her for the day increased by 1800 percent. Thanks to this, Doge became the first altcoin to become more popular than Bitcoin on this platform, according to The Tie.
Doge’s growth rate has slowed down now. The cryptocurrency is trading at 4.8 cents, which is 324 percent ahead of the previous day’s result. In addition, Dogecoin took off again in the morning and jumped from 4.5 to a peak of 5.7 cents. However, it was not possible to keep the top.
The current situation is simply incredible. She once again proved how advanced the cryptocurrency industry is and that she still has the power to surprise.
We believe that Doge’s metrics will draw people’s attention to the blockchain asset industry, and this will allow them to realize the benefits of scripts such as decentralization, lack of central authorities and a truly open market. In addition, Elon Musk has now put the mention of Bitcoin in his Twitter description. And it has 43.7 million readers.