On May 14th, the reference news website reported that it originated from a joke called "dog currency". Nowadays, the joke has become too big, and the market value has skyrocketed - this is a common view among many investors about it
On May 14th, the reference news website reported that it originated from a joke called "dog currency". Nowadays, the joke has become too big, and the market value has skyrocketed - this is a common view among many investors about it. But there is currently no accurate answer from investors or institutions on how high this' day 'is. In the future, driven by celebrity effects such as Musk, the value of dog coins is expected to further climb.
On May 7th local time, Tesla CEO Elon Musk tweeted a video titled "Musk Says Dog Coin May Become the Future of Cryptocurrency", accompanied by a text stating that cryptocurrency has great prospects, but please invest cautiously.
Previously, on the afternoon of April 28, 2021, "Tesla Telephony King, Emperor of Mars" Musk tweeted that he would host NBC's popular late night show "Saturday Night Live" (SNL) on May 8, and called himself "The Dogfather" in this tweet. Shortly after Twitter was launched, Gougou Coin surged in the short term, soaring 21% during the session, and its price briefly surged to 34 cents.
In recent times, every tweet released by Musk about "bringing goods" for dog coins has caused huge controversy. Almost every Twitter can trigger a surge in the value of dog coins.
Under Musk's Twitter, fans have created various emoticons with Mask and Chaigou avatars (source: Twitter)
On May 5th, the price of dog coins skyrocketed again, with a 24-hour increase of over 56%, reaching a record high of 0.6 US dollars per coin. As of May 6th, the increase in the past 7 days has approached 100%. If calculated at the price of $0.004662 per coin at the beginning of the year, the price of dog coins has increased by 130 times this year.
It is reported that the popular and skyrocketing "Dogcoin" genre was born out of a joke, whose founder used the exaggerated and playful Doge emoji pack as a symbol to satirize the speculative atmosphere in the Bitcoin industry. However, later on, this joke became bigger and bigger, attracting Musk as its platform, constantly bringing the hype of Dogcoin to new heights.
"Dog coins are really outrageous," "Dog coins have reached a new high," "Musk wants to bring dog coins to the moon,"... At home and abroad, dog coins have become a hot topic and are beginning to be tried as an "investment method. Unlike the widely held belief that currency naturally has seriousness, Doggy Coin has catered to the needs of internet natives from the beginning to pursue fun and resist rules, becoming a unique virtual currency with community culture.
In addition, unlike the "consensus" of Bitcoin's so-called "decentralization and confrontation with hyperinflation," what carries the value of Dogcoin is a playful and fanatical emotion, and whether recharging emotions is considered an investment method is not a "consensus" in the coin industry.
At the same time, some economists have stated, "The main reason for the popularity of dog currency is still due to Musk's' carrying goods'. If Musk no longer continues in the future, or there is no actual support for action, dog currency will fall to its original level, and there is even a risk of collapse
Musk has brought dog coins multiple times on Twitter (source: Twitter)
According to data from CoinMarketCap, a cryptocurrency research institution, the price of Dogcoin has recently skyrocketed, with its total market value reaching $50 billion on April 20th, surpassing Ford Motor and reaching $87 billion on May 6th, surpassing FedEx and becoming the fourth largest digital currency after Bitcoin, Ethereum, and Coincoin.
After analyzing the relevant trading data of Dog Coin this year, cryptocurrency data agency PAData found that the trading volume of Binance, OKEx, and Huobi accounts for over 60% of the total trading volume of Dog Coin. Within the market coverage of these three exchanges, the market that requires stable currency as the trading medium is mainly the Chinese market, which may mean that the main buyers of Dog Coin are Chinese users.
Analysis suggests that it is difficult to define the future value direction of dog coins. Because initially, the number of dog coins was limited to 100 billion, but in the end, dog coins became a currency with an indefinite total amount and unlimited issuance. In addition, the high concentration of holders also makes the future of dog coins uncertain.
According to Coindesk, a cryptocurrency research firm, the top 10 dog coin addresses account for approximately 41.35% of all circulating dog coins, which means that a small number of dog coin investors can easily manipulate the price of dog coins. Previously, Musk had also expressed the issue of excessive concentration of dog coin holders.
According to Reuters, Musk is a well-known cryptocurrency supporter who once tweeted, "If big players of Dogcoin sell most of their currency, I will fully support it. In my opinion, the only real problem is the concentration of currency holdings
Source: Reference Information Network
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