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Dogecoin Outlook and GameStop Event

By Ollie H. - Crypto Consultant - 28-02-2021

The first meme-coin was launched in 2013. Dogecoin (DOGE) is a tribute to the well-known meme Doge, whose roots date back to 2005. The project started off as a cryptocurrency with more than $7b in market capitalization. More recently, its price has lifted to current all-time-highs last February.

A sub-group on Reddit called "WallStreetBets" (WSB) is the online forum for people all over the world, who have come together and shared their stock market experiences. GameStop (GME) is an American company that offers physical computer games and similar items. With the advent of online gaming sites and the COVID-19 pandemic, they have struggled as of late. The company has suffered financial setbacks and has sold thousands of their stores all over the world.

Large investors in the stock markets have been betting on their loss and making money. They borrowed (and then sold) GME stocks at the start of January and expected them to fall, so they could buy them back at a cheaper price and make money on them. These companies were surprised when stocks did not collapse but unexpectedly rose.

From $17.25, these stocks rose to $325+ per unit. This meant a +1,784% rise and a millionaire loss for short-selling buyers, all thanks to a handful of WSB Redditors. The motive for this was, rather than finding gains, pure retribution. Bigger hedge funds are widely criticized for the financial crash of 2008 because they triggered a damaging housing bubble that left millions of people homeless.

Many people who buy altcoins followed the Gamestop madness because it was just the beginning. At some point, someone called "WSBChairman" on Twitter wondered if Dogecoin had ever hit the dollar. And it was a welcome lift to the price of this crypto. Soon, Elon Musk joined the group with more tweets and a purchase for his son.

The Dogecoin purchasing fever at the end of January and early February resulted in a new price high of more than $0.084 per coin. In addition, the #DogeArmy was still on Twitter, determined to raise this token to a dollar. With Tesla also buying Bitcoin (BTC), it seems that Elon Musk has not entirely lost his fondness for this currency.

The influence of culture can be overwhelming and Dogecoin is a part of it. For now, we can just wait and see from rank 14 in market capitalization and a price of over $0,0056 per coin. Who knows if we will make a profit or risk it all tomorrow? But as Billy Markus admitted, "Dogecoin and the Dogecoin community can be a force for good."

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https://www.newsbtc.com/sponsored/dogecoin-perspectives-and-gamestop-incident/

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