Bizarre teaser for Bitcoin parody Dogecoin
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Created in 2013 by software engineers Billy Markus and Jackson Palmer, dogecoin was meant to be something of an online joke. But eight years on, and the crypto token named after an online meme has become the most talked-about cryptocurrency of the month. As of 2.11pm BST on April 16, dogecoin’s market cap is evaluated at an astounding £32.77billion ($45.22billion).
Dogecoin is trading for £0.253854 ($0.350337) per token and is up more than 160 percent in the last 24 hours.
DOGE’s meteoric rise has been attributed to the token’s growing popularity on the internet.
In particular, celebrities and tech moguls have publically endorsed the token, thrusting it into the spotlight.
South African billionaire and SpaceX chief Elon Musk, for example, has been frequently tweeting about the token and has even promised to put DOGE on the Moon.
He was joined by the likes of rapper Snoop Dogg, KISS bassist Gene Simmons and TV chef Guy Fieri.
Consequently, DOGE investments made one year ago have already yielded more than 6,000 percent returns.
And some speculate the token is only going to go higher, possibly hitting £0.72 ($1) by the year 2025.
But not everyone has jumped on the DOGE bandwagon and despite the overall bullish sentiment, some analysts have warned foul play may be afoot.
According to David Kimberley, an analyst at Freetrade, there is a strong possibility dogecoin is being inflated by a small number of traders before a massive sell-off.
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The analyst told Express.co.uk: “Dogecoin investors are basically betting they’ll be able to cash out by selling to the next person wanting to invest.
“You buy some of the cryptocurrency, hope that others will come in after you to push the price up, and then sell off when they do.”
Unfortunately, should this happen, quite a few punters risk losing their money on the meme coin.
Mr Kimberley added: “This latest uptick in price isn’t indicative of any meaningful value the cryptocurrency offers, it’s just a surge in interest from people looking to get rich quick.
“That can make for a fun bet, but it’s not good investing.
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“And if you’re the one left holding on to the coins when the market tanks, you may regret taking a punt in the first place.”
There is, of course, no guarantee this is going to be the case with DOGE.
Michael Kamerman, CEO of Skilling, believes the volatility surrounding the token will taper off in the coming years.
The key, he believes, is more long-term investment and use that will bring stability to the meme coin.
Investing in any cryptocurrency is a risky business and you should be prepared to lose your money if you.
As with all investment options, analysts always advise diversifying your portfolio.
And you should never invest more money than you are prepared to lose.
Here in the UK, the Financial Conduct Authority’s (FCA) stance on cryptocurrencies is they are high risk and speculative investment.
The FCA said: “If you invest in cryptoassets, you should be prepared to lose all your money.”
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