A TikTok challenge is driving the price of Dogecoin up. The cryptocurrency born in 2013 is registering a +44% in 24 hours, reaching 0.003 dollars.
It’s a gain that adds up to that of the past few days and is close to 70%. Dogecoin has gone from being worth 2 thousandths of a dollar to 5 thousandths touched in the night, where then a retracement followed down to the current 0.003 dollars.
Everything started from a video on TikTok that currently has 5,000 comments and 63,000 interactions. The user James Galante posted it. This video is nothing more than an invitation to invest in Dogecoin.
“Let’s all get rich. Dogecoin is practically worthless. There are 800 million TikTok users. Invest just 25 dollars, once the stock hits one dollar, you’ll have $10,000. Tell everyone you know”.
Basically, it’s about making a commitment and bringing the price of Dogecoin to $1.
Apparently, this experiment is bearing fruit since the price of Dogecoin is actually growing, even if it is far from being worth 1 dollar, which would be equivalent to a stratospheric growth.
Meanwhile, the challenge has gone viral: the hashtag #DogecoinTikTokChallenge has over 500,000 views. This video was also followed by more or less enthusiastic users. Some have chosen to invest more than the $25 suggested.
Another user even thought to launch a similar one with XRP, which today, ironically, is rising significantly after months of substantial stagnation.
Overwhelmed by social popularity, Dogecoin has intervened on Twitter, suggesting its users to be careful:
Be mindful of the intentions people have when they direct you to buy things. None of them are in the spot to be financially advising.
Make choices right for you, do not ride other peoples FOMO or manipulation.
Stay safe. Be smart.
— Dogecoin (@dogecoin) July 8, 2020
“Be mindful of the intentions people have when they direct you to buy things. None of them are in the spot to be financially advising. Make choices right for you, do not ride other people’s FOMO or manipulation. Stay safe. Be smart”.
These words seem to encourage distance from the social challenge.
TikTok at risk of a ban in the US
The challenge may well come to an end soon because TikTok is in danger of being banned from the United States. The social network would be based in China and according to Secretary of State Mike Pompeo, it makes sense to download the app “Only if you want your private information in the hands of the Chinese Communist Party”.
It is safe to assume that Trump’s position is no different, considering the joke that TikTok played on him a few days ago.
On the occasion of the first post-lockdown event in Tulsa, Oklahoma, TikTok was used for coordinating to boycott the US President’s rally. Basically, thousands of users registered and then chose not to show up. As a result, Trump was faced with a half-empty arena amid general embarrassment.
Dogecoin and the TikTok challenge, another twist of fate?
It seems Dogecoin owes its history to irony and randomness. Dogecoin was in fact born in 2013 practically as a joke from an idea of the American Billy Markus and the Australian Jackson Palmer who thought it was a good idea to create a Litecoin fork. For the resulting crypto, they chose the symbol of a meme, the “doge” a Shiba Inu breed dog.
The creators’ bet was that the cryptocurrency would receive a lot of support precisely because it was based on a meme.
In reality, Dogecoin remained a bit in limbo and never really “broke through” although it’s stable among the top 100 crypto assets with the highest capitalization and is used as a reward system for content posted on Twitter and Reddit.
Its historical high coincided with the speculative bubble at the turn of 2017 and 2018: in January 2018 in fact Dogecoin touched the value of a penny. Then it sank to $0.001 with the crisis of March 2020.
Now we’ll have to see whether the social challenge will boost its value as wished by those who launched it. What is certain is that trades have increased, as shown by the volumes, which according to CoinMarketCap are close to 800 million dollars, far from the volumes traded on Tether and Bitcoin.