The Crazy Doge
DOGE, which no one asked for, surprisingly soared 4 times overnight!
According to QKL123 data, DOGE violently pulled up from $0.018 to $0.086 last night, surging 400% overnight, with a market cap of up to over $9 billion for a time, placing it in the top 7 of cryptocurrency market caps, surpassing emerging DeFi leaders such as AAVE and UNI, as well as long-standing mainstream coins such as BCH and LTC. The market cap ranking and price had fallen back at press time.
Why the surge?
For the reason of this round of surge, the most direct reason is influenced by the U.S. retail investors vs. Wall Street short-sellers. Recently, the GME short-selling drama in the U.S. capital market shocked both at home and abroad, with WallStreetBets as the main front of public opinion, GME surged 10 times in just two weeks, and the options volume was the largest ever in U.S. stocks.
Under the short-selling market, some well-known hedge funds lost a lot of money because of shorting. In order to stop the shorting market from further intensifying, Robinhood and other brokerage firms suspended the opening of GME options, and GME stock plunged 60% last night.
The incident even shocked the U.S. Congress, which hastily announced a hearing on the suspension of GME stock trading.
GME’s trading restrictions have sparked discontent among retail investors, who see it as helping institutional short-sellers and an injustice to retail investors.
Twitter user WSB Chairman (a mock account for WallStreetBets opinion leader wsbmod), who has more than 700,000 followers, started tweeting intensively about cryptocurrency opinions.
Yesterday morning, WSB Chairman tweeted, “A lot of you are talking about Dogecoin. what’s that? A meme crypto?” After the tweet, Dogecoin surged in response, breaking through its previous highs on the same day.
Attention, WSB Chairman tweeted at 11:53 on January 28, the same time when Dogecoin spiked.
As you can see, the direct cause of the Dogecoin spike was WSB Chairman’s call orders. Even though WSB Chairman is not WallStreetBets leader wsbmod himself, retail investors simply disregard this.
Especially last night, US retail investors were outraged after brokerage firms banned opening GME options positions. WSB Chairman also realized that within the existing rules system, retail investors are the losers after all. His tweet “They can only control us because we use their currency.” seems to indicate that he wants to keep fighting in the cryptocurrency world, which is not bound by the existing rules.
The tweet received many likes and comments from people in the cryptocurrency world, and Dogecoin continued to soar after the tweet was posted.
In addition to the main battlefield of Twitter, the telegraph group that was quickly organized yesterday was also calling out for Dogecoin. In just one day, there were more than 60,000 group members. The messages inside are filled with FOMO.
In addition, Tesla founder Musk also adds fuel to the fire. At 6:47 a.m. this morning, Musk has been appointing himself as the founder of Dogecoin. He tweeted a picture of a dog, which was taken by cryptocurrency players as a call for Dogecoin.
Reflections on the surge of Dogecoin
In response to the surge in Dogecoins, DeFi’s well-known player Super Jun said it was a financial battle under deconstructionism:
Dogecoin has a temperament that other coins don’t have: absurd, useless and ridiculous. Now the US leek community is trying to use this temperament to hit the hedge fund in the face: you say we are useless, you say absurd and ridiculous, then we prove you are wrong. Now the US leek community is trying to use this temperament to hit the hedge fund in the face: you say we are useless, you say absurd and ridiculous, then we will prove it to you and the proof is the multiplier that pulls up.
In fact, for veteran cryptocurrency players, Dogecoin didn’t have much value and was used as a bounty in the early days, and then didn’t promote itself. It barely took off in this wave of DeFi like most of the older generation POW coins.
Today, the well-known micro-blogger BaozouBeiwei listed some of the characteristics of Dogecoins in more detail:
1. Decentralization. Founders left the project early and there will never be any technical problems although the project progress is stalled.
2. POW cryptocurrency. This will not be discussed, and this point may be a bitcoin-influenced bias of mine, but I am a staunch advocate of POW. And turn over the history, you will find that the residue of the old coins, POW is still the mainstream.
3. No black history. The project is transparent, with no official free chips, a good reputation, basically nothing negative news.
4. There has been a market chase experience. The Dogecoin has been popular when it first came out, and the elderly will basically have bought it. How influential? See the current Ether.
5. It has its own characteristics. Dogecoin started as a joke, not for hype, and has its own reward culture. I remember that there used to be enthusiasts who made plug-ins for rewarding in Weibo, although it ended up not working.
Currently, Dogecoin has traded $9 billion in the last 24 hours, ranking fourth in volume for the day, second only to ETH, with a strong hype atmosphere. However, with GME soaring 10 times in just two weeks, it is worth waiting to see if Dogecoin will replicate GME’s trend.
The surge in Dogecoin has also opened up the market cap space for altcoins, with BTS, BTM, and others surging by more than 50% today. However, mainstream coins such as BTC and ETH are instead showing signs of decline today. According to historical experience, the end of a bull market is usually a carnival of non-mainstream coins, which needs to draw investors’ attention.
Article from Longcrypto
Translated by Yang(Mengyan Finance)