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- Meme coins have grown exponentially with their social media presence and their power to scale markets in all locations
- Dogecoin investors are part of a majority of a greater fool theory as it continues to expand across regions
- Investors like Elon Musk and celebrities have pushing the price of Dogecoin with regular investments in it
The greater fool theory states that investors purchase shares/digital currencies at a higher price without conducting market research. Soon, the market will not consist of such fools leading to an inevitable crash. Billy Markur, co-founder of Dogecoin, world’s most famous meme coin, has stated that 99.9% Dogecoin investors are part of a greater fool theory. New entrants are entering the crypto market at higher prices, making profits and searching for fools to sell them yet again.
The theory might be devastating for many
Retail investors need to check whether the cryptocurrency has a website of its own. A mere glance through its whitepaper is not sufficient to make profits as the existence of a github and contract points are necessary. The potential market needs to be understood along with its competitors and developers present in the network.
Investors ignoring valuations might be detrimental as the market sentiment needs to be studied carefully. DOGE has grown more than 6,815.92% this year with investors consisting of strategists like Elon Musk and the DOGE army itself.
Several terms have made their way to textbooks like diamond hand which means that an investor holds on to the asset when prices are falling. Similarly, paper hand refers to an investor who sells the corpus pretty early in the investment journey.
Digital coin performance under scanner
The popularity of Dogecoin is unwavered as the parody currency has been bought by social media influencers and celebrities across the globe. However, the currencies’ scalability, intrinsic value and security issues need to be addressed before taking a wise investment decision. It’s the social media connection that has the meme coin in the driving seat among new entrants.
The support of business magnates like Elon Musk has paved the way ahead combined with a strong foundation. Dogecoin is poised to breach the $1 mark before the end of July according to analytical trends post which $10 will be the next level to breach. It is very foreseeable that corporations and celebrities are bound to endorse Dogecoin in the coming years making it a formidable product for the masses.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
