Crypto pundits have urged caution after another Elon Musk-fuelled dogecoin (DOGE) rally sent the token up to the verge of the top five coins per market capitalization.
DOGE is now testing the waters beneath the USD 0.33 mark, with 24-hour growth of just over 20% at the time of writing (UTC 10:38). It’s up by 504% in a month and 13,661% in a year.
DOGE price chart today:
And once again, it appears to be the usual suspects – or rather their Twitter activity – that has spurred the growth: namely the Tesla CEO Elon Musk and the Shark Tank star and Dallas Mavericks supremo Mark Cuban.
Cuban got the ball rolling with an appearance on a TV show hosted by TV personality Ellen DeGeneres, where he called DOGE “a whole lot better” of an investment option than buying a lottery ticket.
The Mavericks boss has previously talked up DOGE after announcing that he would accept the coin as a means of payment for merchandise and tickets. He also stoked the Twitter flames a day prior with a reply to a post where he added a criticism of the trading app Robinhood as an aside, and claimed,
“DOGE is the one coin that people actually use for transactions. We take many others via BitPay. But people spend their DOGE and that means more businesses will start taking it. The greatest inhibitor to it’s growth is that you can’t spend the DOGE you buy on Robinhood.”
Musk also got in on the act, referencing the token as mystically as ever with a brief post about his forthcoming appearance on the hit American comedy show Saturday Night Live (SNL) – a week this Saturday – where he is slated to host proceedings.
It seems that it was Musk’s tweet, rather than Cuban’s activity, that truly galvanized the market this time around.
But wary crypto veterans had a few words of warning for the many DOGE enthusiasts who have piled money into the token as a result of Musk’s return to the dogecoin foray.
Adam Back, CEO of major blockchain technology firm Blockstream, took to Twitter to warn:
“By all means play if you want, but you should be aware of, and willing to absorb the risk you are buying into. Particularly newcomers.”
Messari researcher Mira Christanto went a step further, claiming that DOGE “not about crypto.” Rather, she opined, “It’s a bet on social media and the populist movement.”
And Eric Meltzer, the Founding Partner of Primitive Ventures, a cryptoasset fund, wrote that Musk’s “DOGE thing” was “low-key” making him sad.
“It’s easy to say: ‘What kind of moron would ape their life savings into doge just because Elon tweeted about it?’ Sadly the answer is: thousands of them. Which is why not doing this would be the better choice.”