A look at the memes and cryptocurrencies
Facebook saw the doge meme back in 2013, a year later, after Facebook acquired Instagram. The meme was originally about a Shiba Inu dog, which is a hunting dog breed from Japan. However, the meme had the breed pictured in a rather sceptical way. Here the dog was almost pictured as it was running away from the feelings. It was not sure about how to react next, all in a comic sense. That's what memes do; now they can turn any picture into a funny sense.
The meme naturally fell into the social media feed of two people, engineers rather. The beginning of the second decade saw the inception of many cryptocurrencies after the goliath had hit the market with the initials bitcoin. After Bitcoin, many other cryptocurrencies emerged but seeing one right out of a meme was something new.
After the meme-based currency was registered in the market as an official currency, not a lot was seen that could indicate that it had even a slight trajectory resembling that of bitcoin. This was also the case with almost all the other cryptocurrencies. None saw what bitcoin could.
Then came the coronavirus pandemic, and everything changed. People began connecting more on social media and the trends that it held, becoming the market trends. This is being talked about here because of the so-called revolution that GameStop saw.
GameStop was a 90's kid favourite place where everything that the then technology could make in gaming was available. Since the technology changed and PC gaming walked into the larger picture. GameStop saw its fall.
A professional hedge fund saw the same fall and what they did, caught the eye of some Redditors who were also amateur traders.
They realised that the hedge fund would go short and make billions. The amateurs' group bought huge stocks of GameStop and made the stocks go sky-high, making the hedge fund so bankrupt. That did happen. Some people over the internet decided that this is not how it happens. The hedge fund had actually to file for bankruptcy after this.
But since we are talking about DogeCoin, why is all of this relevant? Why is it even being mentioned here? Because the same Redditors who technically bankrupted the hedge fund also said that dogecoin is the next in line. These people also claimed that cryptocurrency would see a lot more in the future.
Was that sufficient for the stocks to see a surge? Well, yes, but then came Elon Musk, the man with a mission to "occupy mars" and possibly the closest earth could get to a real-life Tony Stark.
Some also believe that there will be a day when everything will begin to perish, and then, the world will see an iron man suit, and it will be musk in the cockpit.
Nevertheless, Elon Musk and his tweets always made the market volatile. In January, Musk had supported the GameStop revolution by tweeting "GameStonk!" and adding the Reddit link next. Later, on the clubhouse app, he had stated that he was a supporter of bitcoin and that "it is on the verge of getting global acceptance".
Then in February, the multi-billionaire tweeted that doge is the people's cryptocurrency. This actually made DogeCoin surge and saw a hike of more than 50%.
The market was already fuming with what had happened with the game stock. A tweet from someone like Elon just increased the heat.
Musk also tweeted that I am becoming a meme, Destroyer of shorts." it didn't make any sense, but it was seen as a targeted meme towards the professional hedge funds who use the shorting positions to make money.
DogeCoin's sudden surge can also partly be credited to the veteran Westcoast rapper Snoop Dogg. The Rap-Moghul tweeted his own morphed picture with the dogecoin trademark Shiba Inu as the face of it. He also tagged Musk in the same post.
After the series of tweets by Musk, Snoop, and a couple of more influentials, the cryptocurrency began trading at almost 0.087 dollars in the market.
Musk had also said that he would support all of the dogecoin's major shareholders if they sold their coins. This will, in return, make the currency move more and more in the market.
DogeCoin is just an example of the volatility that the crypto market holds, and with that comes an opportunity to earn. When musk had tweeted the word bitcoin, the digital currency saw more than a 20% surge in it.
Also, Tesla has released an official statement that it has invested more than one billion dollars in bitcoin and soon accepts the cryptocurrency as a payment mode.
The Cryptocurrency market is filled with opportunities for making piles of money and is mostly driven by the market's emotion. There are a lot of goliath brokers like HFTrading, which promote cryptocurrency trading in the market.
It
should also be kept in mind that the crypto market, being already volatile, can
also make the investors run for their money.
