Reddit Frenzy Pumps Up "Joke" Crypto Dogecoin

Written by:
Aaron Goldstein
Published on:

One of the beneficiaries of the past week's Reddit short squeeze frenzy is none other than a crypto coin that started as a joke, Dogecoin.

The initial short squeeze increased video gaming retailer Gamestop's stock price by almost 190 times from its record low of $2.57 to nearly $500 per share.  Approximately 140 percent of GameStop shares had been sold short. 

The subreddit, WallStreetBets, has become notable for its aggressive trading strategies, and now its role in the GameStop short squeeze.

Dogecoin's price skyrocketed Thursday after a Reddit board talked about making it the cryptocurrency equivalent of GameStop.

The price of dogecoin (DOGE) stood at $0.057410 at 10 a.m. ET Friday, according to Coingecko, up around 150% on the day. It had eased from $0.070755 late Thursday when it had seen a surge of 800% in just 24 hours. The virtual currency had earlier hit an intraday high of $0.072330.

On Friday, dogecoin had added about $7.17 billion to its market capitalization or total value, in 24 hours, according to data from Coinmarket cap. Its total market cap stood at $8.2 billion, making it the ninth largest cryptocurrency.

Dogecoin was invented by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system that is instant, fun and free from traditional banking fees.

It was created in 2013 based on the popular “doge” meme at the time which involved a Shiba Inu dog. The logo of dogecoin is a Shiba Inu. It was initially started as a joke to satirize the growth of altcoins by making the doge internet meme into a cryptocurrency but has since found a community, according to Arjun Kharpal of CNBC.

This isn't the first time in the past twelve months that Dogecoin has seen its price rise dramatically as a result of social media and/or group efforts

In July 2020, the price of Dogecoin spiked following a TikTok trend aiming to get the coin's price to $1.

Elon Musk, one of the individuals who helped push Gamestop's stock price upwards, tweeted out Friday that Dogecoin was his favorite cryptocurrency.  Reddit users took this as a sign the tech entrepreneur supported the DOGE rally.

The coin is accepted in the online gambling community by sites such as Bookmaker.eu.

- Aaron Goldstein, Gambling911.com

Business/Financial News

Cathie Wood Backing Sends Bitcoin Back Above $50K

Cathie Wood Backing Sends Bitcoin Back Above $50K

Ark Investment boss Cathie Wood told Bloomberg Tuesday evening she remains "very positive on bitcoin," and is "very happy to see a healthy correction here."  This may have helped push the cryptocurrency price above the $51,000 mark overnight.  But there are other factors perhaps.

Craig Wright Begins Landmark Legal Action Against Bitcoin Developers, Others

Craig Wright Begins Landmark Legal Action Against Bitcoin Developers, Others

Dr. Craig Wright, an Australian computer scientist who claims to be the inventor of bitcoin, is now suing the developers of BTC, BCH, BCH ABC and BSV over 111,000 stolen Bitcoin, according to an announcement by ONTIER.

Bitcoin and Ethereum Prices 'Seem High,' Says Musk

Bitcoin and Ethereum Prices 'Seem High,' Says Musk

Billionaire CEO Elon Musk said on Saturday the price of bitcoin and ethereum seemed high, at a time when the cryptocurrencies have hit record highs, with bitcoin crossing the $1 trillion market-capitalization threshold.

Bitcoin Flirting WIth $54K: Hits $1 Trillion Market Cap

Bitcoin Flirting WIth $56K: Hits $1 Trillion Market Cap

The price of Bitcoin continued to rise Friday morning, peaking around the $57000 mark Saturday before dipping slightly. The cryptocurrency is currently used for more than 80% of transactions with online gambling sites operating in restrictive markets.

Defendant in Craig Wright Case: "Crazy Amount of Evidence He's Satoshi"

The latest hearing of the Wright v McCormack case took place this week, with the surprise return of Peter McCormack’s legal team for the pre-trial hearing.