Wall Street experienced an unprecedented storm this week. Retail investors are “buying” U.S. stocks like GameStop, knocking out institutional investors. Reddit users recently started talking about a cryptocurrency called Dogecoin, driving the price up 800%.
“At one point, Dogecoin rose 800% to $0.070755 in 24 hours. According to Coingecko, as of 10:00 a.m. EST on January 29, the price of Dogecoin had fallen back from its high to $0.057410. Dogcoin’s market cap once exceeded $9 billion, making it into the top 10 cryptocurrencies.
The “dogcoin” launched in 2013 was actually a joke, based on the popular Shiba Inu meme at the Time, so it used Shiba Inu as its symbol. Since the value of “dogcoin” is relatively cheaper than Bitcoin, it has become a popular topic among Reddit users.
tesla CEO Elon Musk has said in the past that “dogcoin” is his favorite cryptocurrency. He posted a cover of “DOGUE” magazine on January 29 via social media, modeled after the fashion magazine VOGUE. Many people interpreted it as Musk’s support for “dogcoin”. Some netizens even said that the rise to $1 is not a dream.
“Dogcoin has been described as a “cryptocurrency version of GameStop”, but the two are not exactly the same. GameStop’s “surge” was caused by netizens buying shares to counteract hedge funds, and then holding short positions, further pushing up the stock price. As for “dogcoin”, no hedge funds were held short, and it seems that there were simply retail investors singing the praises.
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