Dogecoin takes a hit as Elon Musk plugs it into Saturday Night Live – Retail Technology Innovation Hub
Cryptocurrency has become the new GameStop, with frenetic trading potentially causing first-time investors to sink their noses, according to Nigel Green, CEO of financial advisory and FinTech organization deVere Group.
GameStop, a disused brick-and-mortar video game retailer, rocked Wall Street in January when a group of small-scale, mostly inexperienced investors led by a frenzy on Reddit triggered a short historic squeeze where they have drives up the price of its shares.
This week, since Reddit lifted its ban on discussing three cryptocurrencies – Bitcoin, Ethereum, and Dogecoin – activist investors as well as some famous social media investors have urged others to invest their money in Dogecoin – their new populist pet movement, ”Green commented last month.
“In the same way that the GameStop frenzy was billed as a ‘Wall Street vs. The Little Guy’ battle game, Dogecoin is billed as a battle game against established crypto giants like Bitcoin.”
“But this is usually not the reasoned way smart investors should strategize to create and build their portfolios in order to achieve their financial goals.”
Green expects many newbie retail investors to be burnt out by the Dogecoin frenzy – the same way they did with GameStop.
He says investors should avoid being drawn into the social media hysteria and examine the fundamentals of different cryptocurrencies.
“It is very difficult to compare Dogecoin with Bitcoins, which run on revolutionary technology and have a limited supply, which gives it a scarcity value, among other valuable attributes.”
“And Ethereum, which solves real world problems and provides on-demand business solutions. For these and other reasons, they attract huge institutional investments.
“While we can assume that a lot of people bought Dogecoin, not because they think it has real value, but because they are hoping that others will get FOMO, raise the price, and then they can sell. and make a quick profit. “
Green concluded with a post he gave in January during the height of the GameStop mania.
“If you want to experience the thrill or the novelty of chasing big milestone-led wins on social media, you really need to make sure you have a solid, diverse, long-term financial strategy in place. “