A doge’s breakfast?
The popular dogecoin crypto asset, engineered as a joke back in 2013, has tanked over the past week after reaching a record value on Monday, leaving few investors laughing.
Dogecoin, at last check, was trading at 0.06784 cent, down over 20% from its Feb. 7 record high of 0.087159, according to data from CoinDesk. That decline meets the commonly used criteria among Wall Street chart watchers and technical analysts for a bear market.
Read: Dogecoin? A lot of ‘retail punters are going to lose money,’ says crypto expert
It isn’t clear where the crypto is headed from here, it is still up by about 50% over the past seven-day period and enjoys an eye-popping 1,350% gain since the start of 2021, boasting a market value of $8.7 billion, as of Friday afternoon. That ranks dogecoin just outside the top 10 cryptos, with bitcoin
atop the leaderboard with a market value surpassing $880 billion.
‘People are moving markets en masse and are playing greater fool with each other without understanding the ramifications or their own psychological limitations.’
Doge’s rally got started on the back of a series of bullish, albeit sometimes cryptic tweets from Tesla Inc.
Chief Executive Elon Musk.
A number of celebrities including, Calvin Broadus, otherwise known as Snoop Dogg, and Gene Simmons of the rock band Kiss joined Musk—as well as billionaire investor Mark Cuban—have been tweeting about investing in dogecoin.
On Reddit’s popular SatoshiStreetBets chat forum, some expressed a hope to push dogecoins value to $1.
However, crypto experts have warned that dogecoin, pronounced “dōj-coin” and commonly associated with a popular meme featuring a shiba inu dog, has limited utility compared with other decentralized cryptographic assets, including bitcoin.
Dogecoin co-founder Billy Markus told The Wall Street Journal in an article at the beginning of February that he created the asset in 2012 as a “lighthearted cryptocurrency,” then known as Bells, to serve as the fun version of bitcoin.
In an open letter on Reddit this week,…