Crypto Enthusiasts Caution as Dogecoin Hits 2-yr High Aided by Viral TikTok Videos
Dogecoin (DOGE) advocates have warned traders to avoid speculation in the meme-based cryptocurrency after its price rallied 50% in the last 24 hours.
Specifically, the crypto enthusiast behind twitter handle @Dogecoin has requested investors to “be mindful of the intentions people have when they direct you to buy things.”
In the last few days, Doge coin has rallied mainly due to a publicity propaganda campaign conducted using TikTok, the popular Chinese social media network.
Volume rose over 2,000%, while Google Trends indicated an exponential increase in interest to buy the altcoin, which now stands at 27th place in the list of altcoins based on market cap.
The sudden passion seems to have originated from TikTok trends named “#dogecointiktokchallange” and “dogecointiktokchallenge.” Several TikTok users have posted videos of speculation and performance, welcoming others to participate in trading with their guidance.
A viral video with several thousands of views has even called traders to lift the DOGE/USD pair to $1. At the time of writing this article, the crypto pair was trading at $0.04150, its highest level since October 2018. The twitter handle @Dogecoin, however, was not jubilant.
A tweet from the twitter handle warned traders as follows:
Be mindful of the intentions people have when they direct you to buy things. None of them are in the spot to be financially advising.
Make choices right for you, do not ride other peoples FOMO or manipulation.
Stay safe. Be smart.
— Dogecoin (@dogecoin) July 8, 2020
TikTok, ironically, was instrumental in boosting the price of Doge in an incredible manner. Notably, Elon Musk had voiced support for the altcoin by tweeting “Dogecoin might be my fav cryptocurrency. It’s pretty cool,” in April, in response to a request from @Dogecoin asking Tesla founder to become Dogecoin’s CEO. Even that did not result in a spike triggered by TikTok videos.
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
Dogecoin was created by a hard fork of Litecoin, which was rolled out in late 2013. Jackson Palmer, who created Dogecoin, has publicly stated that the cryptocurrency is a “joke.” However, it did not deter investors from buying that cryptocurrency.
Several altcoins hit record high levels in January 2018. At that time Palmer published an article in tech focused media outlet Vice under the title “My Joke Cryptocurrency Hit $2 Billion and Something Is Very Wrong.”