Cryptocurrency

The Dogecoin mania takes momentum in the midst of the warnings: “be more intelligent”


Key facts:

The trading volume 24 hours DOGE gave a jump of 700%.

The viral challenge that was born in TikTok, it is also trend in Twitter.

The creators of Dogecoin (DOGE) issued warnings to users, while the price of the criptomoneda continues to rise, driven by hundreds of followers seemingly infected by the syndrome of FOMO, the English fear of missing out, which in Spanish would be “afraid to miss something”.

The price of DOGE came to skyrocket up to 71% in the middle of the shopping fever boosted by the trends that have been spread by the internet. These arose out of a challenge virus that was born in TikTok and that in the last few hours has moved to Twitter.

As the challenge spreads has continued to increase the price of the criptomoneda born of a meme, even to catapult your trading volume.

According to CoinMarketcap, Dogecoin reached a little over USD 700 million during the morning of this Thursday, July 9, reflecting a jump of 700%, whereas last Monday it registered a volume of only USD 100 million.

On Wednesday, July 8, the official account of Dogecoin on Twitter, issued warnings for people to remain skeptical about the trend that is occurring in social networks and invite people to not be fooled and to be particularly careful.

Take into account the intentions of the people when you will order them to buy things. None of them is able to advise financially. Takes the correct decisions for you, don’t be fooled by the manipulation of other people. Stay safe. I know intelligent.

Official account of Dogecoin on Twitter.

The official statement clearly makes reference to the scheme pump and dump that would have camouflaged it as a challenge more than the many that have been seen recently in the social networks. This scheme is considered illegal in some countries and is part of a strategy applied by one or several persons with the aim of obtaining financial benefits.

These maneuvers malicious rely on the power of certain people to influence the masses. In such a way that they invite others to invest on an asset, ensuring that it is an opportunity. This causes many gullible people to fall into the manipulation and decide to follow the recommendations causing an effect “pump” (pump).

When the price of the asset has reached a peak, the same people who started the scheme sell their shares, making a profit. Subsequently, as buying interest cools, the assets in question lost value, producing an effect “dump” (landfill).

Legend: The official account on Twitter of Dogecoin has released warnings about the danger of falling into the manipulation that only generate benefit to those who started a movement that is malicious. Source: Skitterphoto / pexels.com.

Legend: The official account on Twitter of Dogecoin has released warnings about the danger of falling into the manipulation that only generate benefit to those who started a movement that is malicious. Source: Pexels.

In the case of the viral challenge of Dogecoin, raises the objective of bringing its price to 1 dollar. However, despite all the pumping that produced an increase of up to 108.7% in two daysthe criptomoneda is still very cheap. At the time of the writing of this article a DOGE has a value of USD 0,0046 as you can see on CoinMarketcap.

Up to this point, who initiated the scheme could have bought a good amount of DOGE when all the movement started, which would generate profits in case you sell your assets today.

As outlined Breaking News last Tuesday, the user of TikTok, James Gallant, began to urge their followers to buy Dogecoin at the end of June. In his video he urges others to buy DOGE stating that they could “get rich” by increasing their value, for which it was necessary that each invest USD 25.

Care with the virus Dogecoin

Some indices may serve to show the scope that has had this fraudulent scheme that is currently driving the price of DOGE. For example, according to Google Trends, the search of the word Dogecoin reached on 7 July to a maximum level (100) of popularity.

The visits to the page in Wikipedia of Dogecoin in Spanish have also been fired. Prior to July 5, had an average of 200 per day, however, on the 8th of July came to 3.598.

On the other hand, some celebrities have joined the trend on Twitter, as the YouTuber Kristopher London, who tweeted that Dogecoin will reach the moon. Also anonymous users are encouraging others.

Even some exchange houses decided to ride the wave that is generating the trend. Bitfinex, for example, introduced a new product called “MegaDogecoin”. A unit of this asset is equivalent to 1 million DOGE (approximately us $ 4.500), according to what was announced on Twitter by Paolo Ardoino, CEO of the platform.

Everything seems to indicate that the warnings launched by the creators of Dogecoin have not made their mark on the users, because the statistics from Google trends show that searches relating to the criptomoneda have reached a peak in popularity. Source: Google Trends.

Also Binance Futures announced the launch of the contracts perpetual DOGE / USDT which will have a leverage up to 50 times. Also, the house of change OKEx submitted its list of products related to the trade of Dogecoin.

On Weibo, the Facebook of China, a user called “Blockchain William” was surprised that a promotion so simple added so much value to a criptomoneda as DOGE. The citizens that commented on this post they were also surprised that a simple viral video managed to manipulate many users.

Some comments left in the post Blockchain William point out that this type of actions, such as pumping the price of the cryptocurrencies, harms the entire ecosystem, as the natural price of the market for an asset is based on other factors associated with their use, even on this, many wonder what can you buy with DOGE?.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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