Just a few weeks ago, Dogecoin (DOGE went through a massive upward move. The coin even ended up in fifth place of the largest cryptocurrencies and was therefore larger than Cardano (ADA). After this, the meme coin also fell spectacularly, but the price of dogecoin is still 450% higher than at the beginning of this year.
Dogecoin has been a mainstream cryptocurrency for some time now. There is a lot of interest from famous people like Elon Musk who seems to influence the price of dogecoin with a single tweet and the coin is even accepted as a means of payment by various companies such as the Dallas Mavericks and Newegg. However, Meltem Demirors, CoinShares’ Chief Strategy Officer, calls the coin a perfect example of a bubble and argues that that is why her company is ignoring the meme coin. Demirors shares the opinion of Cardano founder Charles Hoskinson, among others, who previously indicated that he thought Dogecoin was a bubble.
In an interview with CNBC, Demirors calls Dogecoin “an absolute mania. It’s a bubble in the classic sense. My company is not producing analytics on Dogecoin for a reason. We do not have Dogecoin. We do not trade with Dogecoin. ”
Who else share this opinion?
As mentioned earlier in the article, Cardano founder Charles Hoskinson shares the view of Demirors, but are there any other prominent people in the cryptocurrency world who share this view? It turns out that these are certainly there. Mike Novogratz, founder and CEO of Galaxy Digital, for example. He recently explained that there is a big difference between Bitcoin (BTC) and Dogecoin. They have both gone through an impressive upward movement, but the design of both cryptocurrencies is fundamentally different. Bitcoin, according to Novogratz, is a “well-distributed purchasing power reserve” while Dogecoin’s situation is “bizarre”.
Another famous person with the same opinion as Demirors is Jim Cramer, the popular presenter of the CNBC program Mad Money and a proponent of Bitcoin, that is, compared Dogecoin to playing a game. He even called investing in Dogecoin gambling. “I think Dogecoin is a sport. Gambling is a fun sport and I don’t believe that gambling should be encouraged, ”Cramer said of Dogecoin.
So it seems that despite the great interest in and gigantic price movements of Dogecoin, not everyone is to their liking. Dogecoin remains a polarizing cryptocurrency with the enthusiasm of some interspersed with the envy of others.