An unlikely trend has developed in the social media space that has permeated to a rather distant part of the cryptocurrency one. A viral trend of TikTok has people buying up Dogecoin, a cryptocurrency created with the sole purpose of being a joke. The trend suggests that buying $25 worth of DOGE now could make people mega-rich if the coin tops $1.
In some respects, the trend has been working as DOGE has seen a notable spike in price, but is still far off its $1 target having risen from $0.002 to $0.005. Still, the shilling continues as now famous internet star Jake Paul has joined in on the trend and shilled the coin to his 12 million Instagram followers.
The trend is gaining momentum with more and more famous people as another well known YouTuber, Troydan, has also jumped on the trend and tweeted about the Internet meme-based cryptocurrency.
The concerns are that this proclaimed pump scheme has a lot of similarities to the 2017 Bitcoin price pump where people clamoured to get onboard Bitcoin as it rose towards $20,000 without much understanding of what they were buying.
It is unlikely that Dogecoin will skyrocket the same way Bitcoin did, or cause as much damage, but it is still concerning to see that companies are trying to cash in on this trend. For example, Binance, a company that has been offering derivatives trading on a number of smaller cryptos, has also opened up 50x leverage on Dogecoin following this trend.
At the same time that Dogecoin is getting pumped by a viral trend, there is a developing feeling that an altcoin season could be brewing. Bitcoin has been trading relatively flat and as such interest has moved to more active altcoins. And there have been some big performers.
However, the last altcoin season was predicated very much on money alone, whereas this time around it is being said that only projects that have been pushing for greatest will feel a boost — this was explained, ironically, by Binance CEO Changpeng Zhao.