On July 3, Billy Markus, one of the founders of Dogecoin, suggested on the social platform that the American movie theater chain AMC accepts Dogecoin as payment, and said that he would use Dogecoin to buy popcorn and other products. Recently, Marcus announced his return to the currency circle and frequently cheered for Dogecoin. In just two months, Dogecoin’s “king of goods” has changed from Elon Musk, the CEO of Tesla, the world‘s richest man, to the founder of Dogecoin, but the price has never recovered.
Dogecoin founder returns to the currency circle
At the end of June this year, Marcus announced that he would return to the virtual currency field after 8 years of observing. He bought some Dogecoin through the Robinhood platform and does not intend to sell it in the short term.
It is understood that Jackson Palmer, the initiator of the Dogecoin concept, and Marcus, the program developer, both sold all Dogecoins in 2015, withdrew from the “jianghu”, and believed that the crazy rise of Dogecoin was irrational. .
In a letter to Dogecoin enthusiasts, Marcus recalled that in 2015, he was facing unemployment pressure, so he chose to sell 60 million Dogecoins and bought himself a second-hand Honda with the money he sold. Civic. “Dogeecoin does not solve any problems. If there is, it only exists as an educational tool. This is a reminder that we cannot take this thing seriously.”
If Marcus did not sell Dogecoin that year, according to the previous high of $0.7, the value of his Dogecoin would exceed $42 million (approximately RMB 270 million).
After soaring 74 times, Musk failed?
The popularity of Dogecoin began with Musk’s Twitter call last year (Musk called Dogecoin his favorite digital currency), and then its price soared like a rocket.
Musk has always been known as the “weathervane” of Dogecoin.
Since the beginning of this year, the currency has started a skyrocketing mode, once boarded the top of the major exchanges, and even ranked among the top ten cryptocurrencies by market value, rising 74 times at the highest. This is inseparable from Musk’s frequent platforms. As long as he mentions Dogecoin on social media, Dogecoin will be “a matter of course” ushering in a wave of rise.
Recently, due to the collapse of the virtual currency market, Dogecoin was cut from a high of $0.74 and then fell back to near $0.16.
After two months of silence, when Musk mentioned Dogecoin again, Dogecoin did not violently rise as expected.
On July 2, local time, Richard Branson, the founder of the British Virgin Group, released a video through his Virgin Galactic account, saying that he plans to start the space travel test as early as July 11, and the founder will take the space. flight. According to the official website of Virgin Galactic, the fare for a space trip is US$250,000, which is approximately RMB 1.62 million.
Subsequently, Musk, a space enthusiast, replied under the related video: “Can I pay with Dogecoin?”
However, after this wave of push, Dogecoin’s reaction was not great, and Dogecoin reported a slight drop of 1.04% at $0.25 that day.
Trap or opportunity?
Dogecoin was born in 2013. Because of its low price and community-friendliness, it has been active in the Reddit community all the year round. It is very popular and has even surpassed most mainstream coins.
The OKEx market shows that from 2019 to the beginning of January this year, the price of Dogecoin has not exceeded $0.01.
Although Dogecoin ushered in an epic market at the beginning of the year and market sentiment was unprecedentedly high, the infinite amount and excessive concentration of chips means that Dogecoin has the concept of virtual currency, but it is actually just a speculative tool that has been in the hands of various speculators.
Industry insiders pointed out that the madness of Dogecoin is destined to be unsustainable. After the passion of retail investors, the price of Dogecoin will eventually return to rationality. Dogecoin has a market value of nearly 80 billion U.S. dollars, and an additional 5 billion will be issued each year. To maintain the current price, an inflow of several billion U.S. dollars will be required each year, which is obviously unrealistic. Even if celebrities headed by Musk continue to “carry goods”, if there is no incremental capital to continue to promote, such an inflated market value will be difficult to maintain.
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