BTC Firm Ryze made some strong arguments against Dogecoin after the price dump, following the price craze induced by the TikTok challenge. DOGE’s price last week rallied by the 150%, marking one of the most important increases in the three-day timeframe. In our latest Dogecoin news.
The explosive upside move came as a result of the TikTok challenge regarding the dogecoin price. The DOGE/USD price rate crushed upon topping at around $0.00569 on July 8. The BTC firm Ryze made a strong case against Dogecoin after the dump stating that the meme cryptocurrency is behaving similar to the crypto frenzies from 2017. Dogecoin serves as a reminder of the 2017 notorious crypto frenzy.
The Atlanta-based bitcoin company which creates automated trading solutions for the crypto traders called Dogecoin or its shady price behavior. It also noted the meme cryptocurrency behaved almost like “pump-and-dump-scams” which duped investors of millions of dollars in 2017. The DOGE price increased by up to 150% in just three days of trading. The catalyst that boosted the price was the TikTok challenge which had more than 800 million views worldwide. One of the users, James Galante made a joke about sending DOGECOIN to $1 if everyone invests about $25 into it. The message vent viral which led to a dramatic spike in the Dogecoin rates via multiple exchanges:
“This tiktok I made the other day as a joke about Dogecoin went mega viral and now the crypto’s value is up 16% in the last 24hrs lol.”
Ryze’s co-founder Abhay Aluri explained that the daytraders used TikTok in the same way they used Telegram previously and Twitter to pump cryptocurrencies. He calls this method “dangerous” since it communicated with teenagers and younger adults that have almost no experience in investing and trading. Aluri stated:
“Young, inexperienced investors in their late teens/early 20’s heeding TikTok financial advice hoping to catch the next moonshot, can result in thousands of people getting burned and having a bad experience in crypto.”
DOGE came to existence back in 2013 as a joke token but in the earlier days, people started spending it on making micropayments such as donations and tips. It served as a NASCAR sponsor for driver Josh Wise back in 2014. DOGE failed to keep itself updated with the rest of the market but traders started losing interest.
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