ADVERTISEMENT

Dogecoin army’s campaign to drive crypto to $1 was a bust — so why are the bulls feeling vindicated?

  • June 22, 2021
  • marketwatch
  • 72

It was a dollar or bust for the dogecoin community on Wednesday — and now it seems that dogecoin fanatics have been left with only the bust. However, a failed attempt at producing an epic rally in doge doesn’t seem to have deflated the staunchest supporters of the parody coin.

A social-media initiative to drive dogecoin to the $1 level for the first time ended the way it was most likely to, according to skeptics.

Dogecoin DOGEUSD, -15.61% was last changing hands on CoinDesk at about 31 cents on Wednesday, down 15% on the day, and off more than 30% from a peak of 45.05 cents put in on April 16.

Wednesday’s trading action comes after Tuesday’s campaign fell about 70 cents shy of its ambitious goal. Dogecoin fans on social sites Reddit and Discord, using hashtags #DogeDay and #Doge420, aimed to promote the day for the crypto as “Doge Day,” in an effort to help propel the surging crypto into the stratosphere, adding to the asset’s already spectacular gains of 2021.

Indeed, dogecoin owners have enjoyed a parabolic surge in the so-called meme asset that was engineered back in 2013 as a lighthearted riff on the bitcoin BTCUSD, -2.41% phenomenon. It is up around 6,500% so far this year. By comparison, gold futures GC00, -0.22% are down some 5.5% in 2021, while the Dow Jones Industrial Average DJIA, +0.93% and the S&P 500 SPX, +0.93% are both up by around 11%.

Put another way, $1,000 invested in dogecoin at the start of the year would be worth over $57,000, based on MarketWatch’s calculation of a starting price of 0.005405 cent for dogecoin and a roughly 31 cent trading price now.

Still, fans of dogecoin have ignored warnings from skeptics who point to the dangers of investing in an asset that doesn’t boast the utility or “store of value” concepts linked to bitcoin and Ethereum’s Ether ETHUSD, +1.94%.

On Redditor using the handle EthereumDream explained why dogecoin isn’t considered to be in the same league as Ether or bitcoin:

Bitcoin has a supply limit. No coins can ever be added above 21 million, so it is considered a good store of value. Unlike Bitcoin, Dogecoin is inflationary and has no supply limit. Each minute, 10,000 Doge is added into the network. At this rate, miners add more than 5 billion coins per year.

On Reddit’s r/dogecoin chat forum, meanwhile, bullish investors were still touting the fact that the crypto was trading at 30 cents, compared with less than a penny at the start of 2021.

Source: marketwatch

Disclaimer

The views expressed in this article are the author's own and do not necessarily reflect the view of Hotpot Crypto. Hotpot Crypto shall not be held liable under any circumstances for any losses, damages or expenses arising from the use of any content mentioned in this article.

The information contained on this website is provided for informational purposes only, with no warranties, or guarantees made as to the accuracy, completeness or timeliness of it. Hotpot Crypto assumes no liability or responsibility for any errors or omissions in the information contained on this site. We strongly encourage you to conduct your own research before taking any action.

This site may contain copyrighted material, the use of which has not always been specifically authorized by the copyright owner. If you wish to use the copyrighted material from this site for the purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. Authors or publishers who claim ownership of copyrighted articles reprinted on this website and wish for the content to be removed may email us directly at luankaiye@qq.com

If you would like to connect with us about any of the distributed content or other inquiries, please email us at  luankaiye@qq.com with the relevant documentation.


ADVERTISEMENT

IMG

×