- DOGE has rocketed 143% in three days thanks to a TikTok pump and dump scheme
- Gen Z traders, known as Robinhooders, have shared their desires to push the token to $1
- $1 would see the the token market cap hit $125 billion, second only to Bitcoin
DOGE has enjoyed a monster pump of 93% in just four hours after a TikTok campaign to push it to $1 resulted in the biggest buying volume on the coin in a year. Crypto Twitter has been awash with disbelief, scepticism, and sheer incredulity of the impact of what could turn out to be one of the biggest pump and dumps in crypto history. While DOGE holders have certainly benefited from this huge increase, the desire to push the token all the way to $1 highlights the lack of understanding of basic economics shown by the TikTok brigade, as does the insistence on some to call DOGE coins ‘shares’.
DOGE Pump is TikTok Coordinated Effort
The DOGE pump phenomenon has come about as a result of the Robinhood effect, which has seen thousands of Gen Z amateur traders joining trading platform Robinhood and others like them. Their gung-ho attitude, combined with youthful optimism and a lack of market wariness, has seen many come out big winners by buying the likes of airline stocks at the bottom when Wall Street was dumping them.
This new breed of trader has now caught onto cryptocurrencies, with the low prices of coins like DOGE looking like a very appealing prospect in terms of potential gains. Before long videos like this one were doing the rounds, quickly going viral:
Apparently $DOGE is a stock and they are hosting non anon pump and dumps on tik tok
I’m just gonna leave this here pic.twitter.com/JFvwLwUYlB
— Wendy O (Watch CoinHQ.tv) (@CryptoWendyO) July 7, 2020
It didn’t take long for others to pick up the baton and run with it, imagining to gains to be made if DOGE could hit that magical $1 mark:
— Devchart (@devchart) July 8, 2020
The news spread far and wide, with more famous names getting in on the act:
💰 #dogecoin going crazy! Get In!
— Cage The Elephant (@CageTheElephant) July 8, 2020
$Doge $Doge $Doge I have no idea what it is but moneys all made up any ways so Dogecoin is perfect expression of wealth. Nevertheless its clear that Doge is having a moment and is offically rated as a PFT “to hot to not buy “ https://t.co/CFm1MWq5Sf
— PFTCommenter (@PFTCommenter) July 8, 2020
The Innocence of Youth
Seeing as DOGE’s all time high in early 2018 was $0.018, achieving a dollar per token would be quite the achievement. It would also give the token a market cap of over $125 billion, putting it in second place in the ranking behind Bitcoin. This is, of course, all but impossible, but the beauty of this new generation of ‘traders’ is that many of them simply have no idea about how these economics work.
They also have no idea that organizing a pump and dump scheme is highly illegal, which could make things interesting in a few months…