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Dogecoin is a joke − so what’s behind its rally?
- Dogecoin has seen a value jump of 250% since the election of Donald Trump, with crypto advocates optimistic about the industry under his administration.
- Elon Musk’s informal appointment to the Department of Government Efficiency has helped the dog-themed cryptocurrency to rise.
- Dogecoin has previously seen a surge in value following Musk’s appearance on ‘Saturday Night Live’.
- Dogecoin was launched as a spoof of bitcoin and other cryptocurrencies in 2013, but became one of the most popular crypto coins on the market.
- Meme coins are characterised by complex webs of trust among a global network of users, who invest time and energy into the community in order to see returns and social validation.
- Meme coins are also an alternative to traditional investment, and therefore operate outside of conventional investment rules and structures.
- Musk is viewed as a meme coin influencer due to his social following and playfulness.
- Musk’s proximity to President-elect Trump has also helped dogecoin, while crypto advocates are optimistic about the industry under the new administration.
- It is difficult to understand the value of meme coins in the same way as traditional assets, with valuation based on network activity and social sentiment.
- Meme coins add little to the economy and troll the traditional conventions of valuation.
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