The popular meme-based cryptocurrency Dogecoin (DOGE) has doubled in price in the last few days, and it’s thanks to an ongoing trend on TikTok encouraging users to manipulate the market.
According to a recent report by Gizmodo, the Dogecoin movement was started on TikTok by user James Galante (jamezg97), who promoted the coin in a now-viral video that prompts his followers (and any other viewers) to dump capital into DOGE to help drive the price up.
“Alright here’s a crazy thought. What if everyone watching this video bought some Dogecoin?,” inquired Galante in the video. “Could they really stop us? Could they stop us all?”
jamezg97 also shared with his followers that Dogecoin is such a low “price” that when it reaches $1, even the smallest investment could be worth tens of thousands of dollars. Of course, this is a pipe dream as DOGE at $1 equates to a market cap of $125 billion, around $50 billion less than the current market cap of Bitcoin (BTC).
Things have gotten so out of hand that even the Dogecoin Twitter account spoke out as a warning to investors who might be considering a position in the altcoin.
Be mindful of the intentions people have when they direct you to buy things. None of them are in the spot to be financially advising.
Make choices right for you, do not ride other peoples FOMO or manipulation.
Stay safe. Be smart.
— Dogecoin (@dogecoin) July 8, 2020
While it may come as a surprise to some, the proliferation of amateur investment advice on TikTok is not uncommon, and usually involves trending stocks like Tesla (TSLA). The growth of ‘Wealth TikTok’ appears to coincide with the rise of the active Robinhood trader, which some claiming these traders are responsible for recent moves in stocks like Hertz (HTZ) and Nikola (NKLA).
— Scott Thompson (@ScottPlaysPoker) July 8, 2020
Whether this will lead to a clampdown on the promotion of cryptocurrencies and stocks by social media influencers, especially given the risks associated with meme-based financial advice, remains to be seen.
Regardless, OG crypto traders know that DOGE is usually the canary in the coal mine for a larger altcoin market move. With that in mind, there could be some strong altcoin plays in the coming week, as long as king Bitcoin doesn’t crash the party.
Investors who want to sell their Dogecoin after this run-up (or buy more for some reason) can do so commission-free and earn $25 in BTC by signing up for the Voyager app through this link and trading $100 (or use code: SLUDGE25).
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.