Dogecoin has increased by over 100% in value in the last three days–and it’s all because of video sharing social network TikTok.
It all started last week when TikTok user JamezG97 made a video encouraging other TikTok users to invest in Dogecoin.
His logic was: Dogecoin is ridiculously cheap and TikTok has roughly 800 million users; so if each user bought $25 worth of Doge (10,869 Doge at the time his TikTok was posted), and the price of Dogecoin hit $1, then the TikTok users who bought into Doge would each have around $10,000.
After JamezG97 posted the original video, several TikTok users also made videos promoting Dogecoin. This helped the group market their investment and even led to the creation of the #dogecointiktokchallenge on Twitter.
When JamezG97 posted his first video, the price of Dogecoin was $.0023 per Doge—but on July 8, Dogecoin hit a two-year high of .0057, the highest price it has been since September 2018 when the Dogecoin price hit .0063.
Don’t underestimate TikTok
Considering that a combination of TikTok users and K-pop fans were able to ruin the Trump rally in Tulsa by reserving hundreds of thousands of tickets to campaign rally and then not showing up to make the stadium appear empty, you should not underestimate the power of TikTok users.
Although Dogecoin did not hit $1, we can’t overlook the fact that it increased by about 147% in just 3 days and that the 24-hour volume of Doge rocketed from a mere $120 million to more than $1.3 billion—all because of TikTok. In addition, since July 5, DogeCoin has climbed 13 spots to the #26 rank on the top 100 cryptocurrencies by market cap.
Will Dogecoin touch $1?
Needless to say, Dogecoin probably won’t hit $1 anytime soon—it hasn’t even hit one cent yet. But the Dogecoin TikTok challenge once again showed us the power that a platform like TikTok has and the network effect that can result from a movement that begins on a social networking platform. After all, the price of Doge more than doubled from the time Jamezg97 posted his original video.
The TikTok Dogecoin challenge is also a grim reminder that there are a lot of people in the digital asset space that are only interested in speculation. Dogecoin is a meme-coin, its founders continually denounce individuals who invest in Dogecoin because it has no purpose, they created Doge as a joke. But the fact that individuals traded more than $1 billion worth of Doge in the last 24 hours is a sad reminder that there are a lot of people in the digital currency space for the wrong reason.
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