Tik Tok's viral challenge makes Dogecoin up 20%
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A challenge posted on the social network TikTok by user jamezg97 “James Galante” on Thursday (2) went viral, reaching 59k views. In the video, the user points out that "if all Tiktok users invested in Dogecoin and sold it for $ 1, they would receive a profit of $ 10,000 each".
Dogecoin, the meme worth more than $ 150 million
“We are going to get rich. Dogecoin is practically worthless ($ 0.0023), and (on TikTok) we have 800 million active users. Only invest US $ 25 dollars, and when the value goes up to US $ 1 you will have US $ 10,640.00 ”, said James
In less than a week, Dogecoin (DOGE) saw an exponential increase in its value, rising about 18% to $ 0.0027 and reaching 35th in the market in market cap.
Soon, other users of the platform joined the challenge and started republishing on the subject, as the user kindashortidiot:
“Everyone, just please, listen to me. This is Dogecoin. If you don't know anything about investing, it doesn't really matter. Put $ 25 into it and that's $ 10,000, okay? And if that comes to $ 1, you will win ten thousand. Please just try. Let's pump it! ”
Pump & Dump, a stupid plan
Another user by the name of VirtualBacon commented on the “stupidity of the plan”:
“Some idiots are buying Dogecoin at RobinHood (exchange) today, and they are promoting it as the newest“ action ”. […] For DOGE to hit $ 1, it needs a market value of $ 125 billion; that is, this meme currency, literally Monopoly money (board), needs a market cap twice that of Uber. ”
That is, in addition to pondering the “great stupidity” of investing in a “meme currency”, VirtualBacon concludes by remembering that investments in the stock market are completely different from investments in cryptocurrencies.
The idea of artificially raising the price of an asset promising unlikely profits for everyone in the market in a short time has a name: it is the pump and dump scheme.
The practice is prohibited in the traditional market, but it is still constant with altcoins. The user's idea makes no sense. Who would buy the coin at such a high price for everyone to make a profit of $ 10,000? How can everyone earn $ 10,000 if the currency's price rises little by little?
Anyway, the joke may have had a small effect on the currency; however, you will probably lose more money on this Pump and Dump species than you will.
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