According to a crypto analyst, Dogecoin is the "bad boy of crypto," and it is a victim of Elon Musk's "pump and dump" scheme.
The said cryptocurrency initially started as a joke. However, it is considered one of the leading cryptocurrencies in the market as of 2021. Dogecoin started 2021 with a conversion rate of a penny, but in May, it peaked at $0.74. It is the sixth-largest cryptocurrency based on market capitalization.
In the crypto market, a cryptocurrency's amount varies daily - even hourly. However, some analysts believe that Dogecoin is not worth the hype.
In a Yahoo Finance interview on Monday, June 14, Ric Edelman stated that he strongly opposes Dogecoin, a made-up cryptocurrency.
Edelman, the founder of Edelman Financial engines, refused to say the cryptocurrency's name correctly, and solely referred to it as "Doggy-Coin" because, according to him, it was made as a joke. Hence, he cannot take it seriously. Edelman said that theDoggy-coinn is indeed the bad boy of the entire crypto community.
He added that Dogecoin has no legitimate use, and that it is not something that does the crypto market and community any good despite its efforts to build its legitimacy and credibility within the financial marketplace and by seeking approval of the SEC.
Dogecoin was created to be an alternative crypto option to Bitcoin in 2013. Software engineers Billy Markus and Jackson Palmer joined hands in making the cryptocurrency, but Palmer decided to leave the project after some time.
The cryptocurrency's name came from a Shiba Inu internet meme that people called "doge."
Dogecoin: Victim of Elon Musk?
Dogecoin continues to maintain its highly speculative asset, and it is not new to the crypto world to experience 20% to 30% volatility on a daily basis.
Edelman claimed that the cryptocurrency might come too close to fraud territory, and it will be dangerous. He further said that Dogecoin is a victim of the "pump and dump" scheme by Elon Musk and other wealthy individuals.
In the first week of June, Musk tweeted several Bitcoin memes after publicly admitting that the cryptocurrency and Tesla are not working together.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP— Elon Musk (@elonmusk) May 12, 2021
Afterward, Musk posted two memes about Bitcoin's value.
The memes even became a cause for dispute between Musk and the infamous hacking group "Anonymous."
Dogecoin's Effect on Investors
Benzinga reported that according to Edelman, Dogecoin sadly fell into a category of fad. He even argued that it could be considered fraud, and could creat a problematic environment where people participate in crazy things in their chat rooms.
As a result, Edelman said that it creates a bump and dump environment within the market, slowly filling with people who aim to get rich quickly. He added that there is a vast difference between Bitcoin and Ethereum and a "joke like Doggy-Coin."
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Written by Fran Sanders