KEY POINTS:
- Dogecoin (DOGE-USD) founder Billy Markus says that 95% of cryptos are scams.
- You shouldn’t believe claims that Dogecoin will return to its former high.
- Dogecoin whales selling spells more trouble ahead for the meme coin.
Dogecoin (DOGE-USD), by far the most well-known meme crypto, is largely popular due to a fun and friendly community. However, for anyone actually holding DOGE, the best days are over.
In early May 2021, Dogecoin reached a high around 69 cents. Since then, the meme coin has plunged 88%. In the past month, it’s down 43% and trades at approximately 8 cents.
This has left many wondering whether DOGE might go up. The more important question is this: Why is there still interest in a meme coin that started as a pure joke in 2013 and has not evolved ever since?
“Crypto Is 95% Scams”
Dogecoin co-founder Billy Markus had strong words about the state of cryptocurrency recently, tweeting, “crypto is 95% scams and garbage.”
He continued, saying that change “starts with you – what you support, and how you behave.” Dogecoin supporter Elon Musk reacted to this tweet with a laughing emoji. What’s not clear is whether Billy Markus believes that DOGE is on this list of 95% cryptos that are garbage and scams.
Markus says that DOGE “knows it is stupid,” but Musk says “it has potential as a currency.”Dogecoin Has No Real Value
Some crypto analysts are bullish on Dogecoin, suggesting that the meme coin could return to its former highs. The name Elon Musk comes up a lot as justification for that.
That’s not a solid reason to send the price of Dogecoin higher. In the past, Elon Musk has been able to send DOGE higher, but those rallies have lacked momentum and haven’t had real justification.
Personally, I consider Dogecoin to be a garbage coin that had its 15 minutes of fame. I believe the actual price of DOGE is zero.The Dogecoin Selloff
Who really moves a lot the prices of cryptocurrencies? It’s not not average investors but big those with huge positions — whales.
“The biggest factor” in Dogecoin’s price decline is whales exiting their positions, which means that even if crypto as a whole makes a recovery, DOGE might not recover with it.
The recent collapse of TerraUSD (UST-USD) and Terra (LUNA-USD) has raised concerns about the timing of regulation coming sooner than expected in the cryptocurrency market. Higher interest rates are also creating a risk-off mood. Shifting to safe haven assets makes sense now, and DOGE is anything but.
I expect further selling pressure for Dogecoin. Unless you truly believe Elon Musk can perform a miracle and send it higher, there’s no reason to buy it.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
