Dogecoin increased in record price

Dogecoin, which is often considered a joke among cryptocurrencies, has risen sharply in the past week. According to Coinmarketcap data, the value of each Dogecoin increased from $ 0.34 on May 1 to $ 0.69 as of the morning of May 8.

The big reason for this sharp rise is believed to be the appearance of Tesla CEO Elon Musk on Saturday Night Live, which will take place at dawn 9/5.

Will Musk take Dogecoin soaring?

Many people are waiting for Musk, which has been publicly supporting Dogecoin for a long time, will mention the cryptocurrency right in the show with millions of viewers across the United States.

"Everything will depend on what Elon Musk does, what he says. Everyone will look at the phone while watching the program to keep up with the latest developments," said Alma Cortez, an investor in Dogecoin. Bloomberg. She said she would invite friends over to watch the show featuring Elon Musk.

On the morning of May 8, Elon Musk personally posted a photo of him and two other Saturday Night Live guests on Twitter. Musk also inserted a photo of the dog Shibu, the symbol of the Dogecoin, in the frame. Soon after, the Dogecoin price surged and hit a historic high of $ 0.72 before cooling off.

Just a day ago, Musk posted a video on Twitter saying "Cryptocurrency has great potential, but invest with caution".

There is no shortage of stories about Dogecoin investors profiting from this coin. Due to its very small value, only around $ 0.001 to $ 0.003 throughout 2020, investors can own hundreds of thousands of Dogecoins with just under $ 1,000.

Dogecoin's hot growth is in large part thanks to Elon Musk's cheers. He repeatedly posted on Twitter cheering for the coin, arguing it would "go to the moon," a term for the crypto's skyrocket. Many investors have been waiting for Musk's television appearance to keep Dogecoin going.

With Dogecoin, many experts believe that emotions will contribute the largest to the value of money, not fundamental analysis or technical analysis.

"I will trade on the expectation of the arrival of Elon Musk. Whatever he says, people will surely be disappointed by the words that will not be compared with current expectations for Dogecoin," Yosef Adelman, marketing specialist and Dogecoin investor since 2019, said.

Criticized, Dogecoin still surged

In the world of cryptocurrencies, Dogecoin is considered a joke since there is no app attached, nor an unlimited number of it can be created. Programmers Billy Markus and Jackson Palmer created this coin by copying the Bitcoin source code, searching for "Bitcoin" and replacing it with "Dogecoin". It took him just one afternoon to create Dogecoin, Billy Markus said.

However, the value of this currency has increased sharply over the past 6 months. According to CNBC, Dogecoin has increased 2,500 times in just half a year, reaching a market cap of $ 86 billion, ranking 4th in the market.

During the same period, the S&P stock index rose 19%, and Tesla shares rose $ 56. Cryptocurrencies Bitcoin and Etherum rose 3 and 7 times, respectively, much lower than Dogecoin.

"This time Wall Street is falling. We are seeing young people on TikTok investing much higher returns than the smartest financial investors," said Mati Greenspan, manager of Quantum Economics. review.

"Dogecoin's most interesting point is honesty. Unlike many other crypto projects, it doesn't have a grand vision or world-changing claim," said Galaxy researchers Alex Thorn and Karim Helmy. prefer.

Dogecoin's growth leads to many strange situations. Shares of Coinbase, the largest cryptocurrency exchange in the US, fell to a May 6 low because the company does not support trading of less guaranteed coins like Dogecoin. Meanwhile, trading app Robinhood that supports Dogecoin has climbed to the top of the App Store rankings in the US.

In addition to having no background value, many crypto experts warn that the Dogecoin source code has long been out of date.

"There are a lot of question marks around Dogecoin's software problem. Then there will come a time when the software must be updated. If Dogecoin is really valuable and people can monetize the applications on it, someone else will. Get in right now, "commented Konstantin Richter, CEO of blockchain platform Blockdaemon.

Isabella Humphrey

Update 08 May 2021