Dogecoin: A frenzy of overnight riches, or a ridiculous gamble?

Dogecoin: A frenzy of overnight riches, or a ridiculous gamble?Dogecoin, the "new darling" of the cryptocurrency world, has been making headlines recently. On May 4th, the price of Dogecoin, boosted by Elon Musk, surged again, reaching a peak of over $0

Dogecoin: A frenzy of overnight riches, or a ridiculous gamble?

Dogecoin, the "new darling" of the cryptocurrency world, has been making headlines recently. On May 4th, the price of Dogecoin, boosted by Elon Musk, surged again, reaching a peak of over $0.6 per coin. Since the beginning of the year, the price of Dogecoin has skyrocketed over 100 times. As a result, Dogecoin's total market capitalization has surpassed $80 billion, making it the fourth largest cryptocurrency behind Bitcoin, Ethereum, and Binance Coin. Even Dogecoin co-founder Marcus is baffled by this surge. Marcus did not benefit from Dogecoin's surge he sold all his Dogecoin in 2015 and bought a used Honda Civic with the proceeds.

Dogecoin, born out of a joke, now resembles a real-life absurd "blind box." Investors who delve into it experience both overnight wealth and empty pockets. Even those who struck it rich feel like they're dreaming, exclaiming, "I can't believe it."

"Finance Story Collection" interviewed several early Dogecoin investors, and their experiences might provide a glimpse into this investment craze filled with allure and risk.

Zhang Qi, born in 1985: The exchange ran away, leaving millions of dollars worth of Dogecoin in smoke

"Dogecoin has such a cute avatar. I knew it would become popular back then," says Zhang Qi, an internet company employee born in 1985, who owns a charming Shiba Inu. He's been with this Shiba Inu for over six years, and the dog, named "Fenda," is the reason he bought Dogecoin.

In 2016, digital currency was red hot, with Bitcoin soaring. The entire internet was immersed in the joy of mining, but Zhang Qi wasn't too interested in digital currency. One day, while playing with Fenda, he stumbled upon the Dogecoin (Dogecoin) logo on his phone. "Who put my dog on this?" Curious and for fun, and also wanting to save some money for Fenda's retirement, he decided to buy some Dogecoin.

At the time, Dogecoin was just emerging, and there were few related platforms. Zhang Qi searched for an afternoon and finally found a website on a social forum called baobis (https://www.baobis.com/). Hesitant but hopeful, he tried to log in and succeeded. He immediately bought Dogecoin worth 3,600 yuan.

Initially, Zhang Qi checked the market every few months, but the value didn't change much. As a workaholic, he soon forgot about this asset. Until this year, the market exploded! Zhang Qi suddenly remembered he had Fenda's retirement money. Could the 3,600 yuan worth of Dogecoin he bought in 2016 be worth millions now? His heart raced, and with trembling hands, he opened the website. The trading website was blank! Upon inquiry, he learned that the exchange had run away.

He could have been overnight rich, but instead, it was all for nothing. Zhang Qi was heartbroken for days. Luckily, he hadn't invested much. He said he doesn't want to take on "this kind of risk 24/7 without any logic. It's too risky." He also reminded everyone that if you want to invest in digital currency, you have to choose a reliable exchange. Otherwise, even if it skyrockets a thousandfold, your wealth will be like a moon in the water, easy to break and scatter.

Liu Tong, born in 1990: Dogecoin targeted by MLM groups, worried about getting trapped, but now regrets cashing out too early

Liu Tong, born in 1990, works in market business operations for a financial and financial media company. Ten years ago, he was a naive college student. "Bitcoin is a virtual asset, and it might appreciate in value if you hold it for a few months. It's worth researching." A seemingly casual remark from his computer science teacher planted a seed in Liu Tong's mind. After extensive research, he believed this was a worthy investment. Liu Tong decided to invest half a month's allowance in Bitcoin, but ultimately failed to find a trading platform.

In 2018, after graduating, Liu Tong, with over 30,000 yuan from two months of work plus over 10,000 yuan from a friend, plunged into the digital currency market with a yearning for wealth. He bought over 10,000 yuan worth of Bitcoin, which was the hottest at the time, over 10,000 yuan worth of "air coins", and invested the remaining money in 1.2 million Dogecoin (at 0.007 yuan per coin).

Unexpectedly, within a month, Dogecoin fell to 0.0042 yuan, while other coins he purchased were also declining. Liu Tong was deeply regretful, feeling "virtual currency is a game of musical chairs, but I never thought I'd be the one stuck with the chair!" He could only sell his tokens at a loss. After selling 1 million Dogecoin, Liu Tong looked at the remaining 200,000, thinking they were worthless, so he left them in his account and ignored them.

Just as Liu Tong had nearly forgotten about Dogecoin, a news item caught his eye. "Exposing the Truth Behind Dogecoin's 500 Million Yuan Profit, It Turns Out to be the 'Zhengyu' MLM Team's Hype" and "MLM Team's Pump-and-Dump Scam, the Truth Behind Dogecoin's 500 Million Yuan Profit." In just one day, from August 31st to September 1st, 2018, Dogecoin's price surged 262%, a shocking event in the cryptocurrency world that month. The mastermind behind this surge was a MLM company called "Zhengyu International Holdings Group." The group used brainwashing tactics to entice members to buy Dogecoin.

Liu Tong was startled. He never thought the virtual currency he bought was connected to an MLM group. But then he thought, "This is a once-in-a-lifetime opportunity to get out!" That day, he sold the remaining 200,000 Dogecoin. It was this MLM-driven surge that helped Liu Tong recoup some of his and his friend's losses.

Dogecoin's recent surge has made him regret even more. "If I hadn't sold those 1 million Dogecoin back then, I'd be close to financial freedom." Liu Tong, with a bitter feeling, bought 6,000 yuan worth of Dogecoin. This time, he plans to hold it long-term. After experiencing buying high, selling low, and MLM group-driven price manipulation, Liu Tong no longer has high expectations for Dogecoin. It's a blind box for his future.

Wang Wei, born in 1980: Made over 200,000 yuan in one go, but regrets not buying more

In 2017, cryptocurrency giants emerged as "influencers," and stories of overnight riches unfolded. With dreams of getting rich, Wang Wei, born in 1980, opened a virtual currency forum and began his adventure in the cryptocurrency world. However, Bitcoin was too expensive at the time, so Wang Wei noticed Ethereum, which was only 1,000 yuan per coin. He bought 2 Ethereum, with the intention of holding them long-term, and deleted the trading platform app.

This February, an unprecedented digital currency bull market arrived. Ethereum, which was once 1,000 yuan, soared to 10,000 yuan per coin. Just those two Ethereum brought Wang Wei over 10,000 yuan in profit. Cryptocurrency trading was so exciting! Wang Wei regretted only buying two Ethereum. What if he had bought more? He could have achieved financial freedom much earlier!

At that time, news of Dogecoin's surge flooded the cryptocurrency world. Wang Wei, who had tasted the sweetness of virtual currency, decided to buy Dogecoin. On February 3rd, Dogecoin was only 0.03 cents per coin. Wang Wei confidently entered the market, making small purchases of Dogecoin. He continued to buy a little every day. During this continuous buying process, Dogecoin rose from 0.03 cents to 0.04 cents, then to 0.07 cents, until he purchased a total of 70,000 Dogecoin by February 28th.

In April, Dogecoin rose from 0.03 cents to 0.3 cents! It achieved a 10x increase in just two months, exceeding Wang Wei's expected gains. He quickly sold 50,000 Dogecoin, making a profit of over 200,000 yuan. Wang Wei plans to hold the remaining 20,000 Dogecoin for the long term.

Wang Wei said that cryptocurrency investors all hope to make a fortune. If the coin they bought doesn't increase by 50%-100%, no one wants to sell. It's an exciting battlefield where everyone wants to get rich overnight. Wang Wei also shared a few tips for successful cryptocurrency trading: virtual currency is suitable for long-term investment. It's best to have a mindset