In the case of Dogecoin (DOGE), which is known as a fun currency, the price curve is pointing steeply upwards and has increased by around 50 percent in the last 24 hours. The background to this is a campaign at TikTok, in which users of the social network DOGE are supposed to shop with the prospect of becoming rich.
DOGE and TikTok – that sounds like a crazy combination to insiders. With Dogecoin on the one hand, there’s an altcoin that uses the optically cute dog breed Shiba as its symbol. Then there’s TikTok, the social network launched in China, which is particularly popular with teenagers and is said to have more than 800 million users worldwide. And one of them – apparently “jamezg97” – has posted a video, which starts in English with the words: “Let’s get rich. It’s a simple matter, he says, of investing only $25 in DOGE and working together to drive up the price through TikTok’s huge user base. If this reaches $1, the initial fun will be turned into $10,000 for each
On Wednesday morning, DOGE is trading at just over USD 0.004, so there is still a long way to go to the USD 1.0 target. But the hashtag #DogecoinTiktokChallange is trending on TikTok, which has already seen more than half a billion hits of related content and is jumping to Twitter. The challenge, as it is called, seems to be igniting and not only young people are joining it. DOGE is listed on leading crypto exchanges and is therefore easy to buy. But what only a few of the participants seem to know: DOGE was designed from the beginning as a fun currency and does not know a maximum number of Dogecoins, inflation is pre-programmed. In the last 24 hours, the trading volume with DOGE has exceeded the market capitalisation in absolute figures, but actually, DOGE should above all playfully convey the technological fundamentals of crypto currencies.
Who benefits from the hype surrounding DOGE?
So far, no comments have been received from TikTok as to whether the content on Dogecoin complies with the network’s rules. Because thoughtful voices warn that children and young people are being duped and are wasting their pocket money in a senseless way. Others point to Tesla boss Elon Musk, who once said on Twitter that Dogecoin is cool and perhaps his preferred crypto currency. After all, the DOGE logo has already made it to major sporting events and the community behind this Altcoin is constantly growing.
So let’s hold on to that for the moment: DOGE is experiencing a boom through TikTok, and some investors may be happy. But for a serious, long-term investment, DOGE is highly risky, and if TikTok flips the switch, the challenge as a price driver can very quickly come to a standstill again. But sweet it is, the Dogecoin 🙂
You can buy Dogecoin at Binance.