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The reasons for the rise of the Dogecoin digital currency and its entry into the list of the top ten digital currencies?


 The "Dogecoin" digital currency, which was originally born as a joke, has risen nearly 800% in the last week.

The digital currency “Dogecoin” was created in 2013 based on the famous “doge” meme at that time that belonged to the “Sheba Ino” dog, which became the slogan of the digital currency “Dogecoin”

It is true that the digital currency "Dogecoin" began as a joke, but it found a community surrounding it and marketing it, but it became one of the largest cryptocurrencies in terms o
f total market value.

The digital currency “Dogecoin” is currently ranked seventh in terms of a total market value, with a value of more than 9 billion dollars, surpassing that of Litecoin, Bitcoin Cash and LINK.

It may continue to advance, but the closest scenario is that it rolls back.

The question here, which is the title of the article:

What are the reasons for the rise of the digital currency Dogecoin and its entry into the list of the top ten digital currencies!

The rise of the digital currency "Dogecoin" was driven by groups based on social networks and on the "Reddit" community, where a group of individuals on the "Reddit" site called "SatoshiStreetBets" talked about the digital currency "Dogecoin" and made it go through the same scenario that the share went through. " GameStop ”.

“SatoshiStreetBets” group initiated the idea of pumping the digital currency “Dogecoin” from the “WallStreetBets” group that was behind the “GameStop” stock march.

On Thursday, a poster came to indicate that the digital currency “Dogecoin” is a “GME” cryptocurrency.

In previous articles we touched on what happened with the "GME" stock, and we referred to that as follows:

According to analysts, the rise in GME's stock came after a coordinated attack led by some editors on social media, most notably “Reddit”. These editors were told in a coordinated fashion that Wall Street traders were selling the company's shares amid the general decline caused by the Coronavirus pandemic, so that they would buy them later at lower prices. .

But that was counterproductive.

The method adopted above is termed "short selling" as traders expect to profit from an asset when its price falls.

For example, this can be done by borrowing some shares and selling them instantly.

Then, after the stock price drops, the trader buys them back at a lower price, and returns them to the lender, with the interest collected from the price difference.

But if the asset's price rises suddenly, then traders will run into a problem, in the worst case scenario, they will have to buy it back at a much higher price than what they initially sold to fulfill their obligations.

And this is exactly what the editors are trying to coordinate to attack these people.

The huge hedge fund Melvin Capital was one of the players selling GameStop.

But when stocks rose and reached record levels, the company incurred a "heavy loss."

 With the same steps, some parties want to pump the digital currency "dogecoin" and call for its delivery to $ 1, the number it has never reached, and in the event that this number is reached, the currency will be in third place with a market value of $ 128 billion behind both Bitcoin and Ethereum.

With the price of “dogecoin” rising, there have been some significant dips in the price over the past few hours.

Reddit users encourage people not to sell and keep pushing prices up.

Among the reasons that made the digital currency "dogecoin" rise, too, is the tweet of "Elon Musk", who previously tweeted several times about the currency, the last of which was yesterday, the fifth, where he posted a picture of the cover of "Dogue" magazine on Twitter.

 A Reddit user wrote:
Mr. Musk is with us ... to the moon.

 However, the situation with "dogecoin" is different to that of "GameStop".

Whereas, "WallStreetBets" of the "Reddit" group called for the purchase of "GameStop" shares in order to harm the hedge funds that sell or bet on shares.

By purchasing GameStop shares, a so-called short squeeze is created, forcing the funds to cover their losses, as noted in the above quote.

But there is no such dynamic as hedge funds short of "dogecoin".

Instead, it appears that a group of people is just trying to push the cryptocurrency up to make money.

For your information, this activity is not new in the field of encrypted digital currencies, as a famous "tik tok" has already pumped the digital currency "dogecoin" after calling on all "Tik Tok" users to buy the currency and raise its value up.

In 2018, the US Commodity Futures Trading Commission (CFTC) sounded the alarm about "pump and dump" schemes.

This happens when a specific cryptocurrency is promoted online and then more and more people buy.

Those who bought early sell when the price rises, but many victims will buy near the top and lose their money so beware and don't be the ones who lose their money.