Supporter of cryptocurrency Meltem Demirors said that Dogecoin price skyrocketing is a ‘madness’ and this is the reason its digital investment company is moving away from cryptocurrency which originated in this meme.
“Dogecoin is a classic bubble in my opinion,” said Meltem Demirors, CoinShares chief strategist.
“I’m not saying it’s good or bad … Dogecoin is not for me. The company doesn’t make analysis on Dogecoin for a reason. We don’t own and do not trade Dogecoin.”
Moreover, in an economy, a bubble is a speculative bubble formed from excessive market expectations. Besides, the price of this investment product is considered incompatible with its intrinsic value. This means that the asset is sold at a price higher than its fundamental value.
Dogecoin Price is Up 5,600% in Past Year
According to CoinDesk, surprisingly Dogecoin’s price has gone up 5,600% in the past year. The all-time high price for this cryptocurrency is 45 US cents. According to a cryptocurrency transaction tracking site, CoinMarketCap has the seventh largest market cap in the world.
“I think what happened to Dogecoin must be a madness and we see that reflected in the price. We see some people think investing is entertainment,” said Maltem Demirors.
Previously, cryptocurrency supporter and Galaxy Digital CEO Mike Novogratz said the Dogecoin situation was “even stranger” than what happened to GameStop, a game accessories sales company whose price has gone up because it was bought by retail investors even though the company is fundamentally losing money.
Dogecoin Begins with Mocking Bitcoin
Dogecoin was launched in 2013. Initially this cryptocurrency was a joke to mock Bitcoin. However, its popularity was boosted due to social media because it was triggered by the Reddit forum. Tesla CEO Elon Musk and several other celebrities have also posted positive things about his Dogecoin in the media regarding.
CoinShares is a company that invests and manages digital assets that was founded in 2014. The company is estimated to have managed funds worth US $ 5 billion.
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