2021-05-05 12:06:17

Dogecoin ($DOGE) Cryptocurrency Price Rise Means Memecoin a Joke No More

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For anyone who still thinks Dogecoin is a joke, there are 90 billion reasons that say it’s not.

That’s how much the digital token is now worth in dollar terms after another 40% gain in the 24 hours through Wednesday. Useless or not, the coin has been swept up in the crypto mania that’s gripped markets awash in central bank largesse. It’s the latest milestone in a year of speculative excesses for a market Nouriel Roubini once described as “the mother of all bubbles.”

While in the past, trillions of dollars in stimulus by governments and central banks might have triggered a rush into gold for the inflation-wary and risky stocks for the intrepid, a deluge of cash this time round is flooding into the nascent crypto market. Few illustrate this better than Dogecoin, an essentially useless cryptocurrency that’s become the destination for a horde of day traders egged on by Internet buzz and a self-propelling buying frenzy.

Also read: Why Dogecoin Is the Meme Stock of the Cryptocurrency Universe

“At some point, something is just real,” said Sam Bankman-Fried, the Hong Kong-based chief executive officer of the FTX crypto exchange. “If Dogecoin is stupid and valueless, it shouldn’t be worth $90 billion. How about gold or Bitcoin or euros? Our collective imagination has given them value, and now we just think about them having value.”

The overnight gain took Dogecoin’s one-week advance to 129% and its value to $85 billion, according to CoinMarketCap.com data, eclipsing the largest exchange-traded gold fund and even stocks like Fedex Corp. and Snap Inc. A year ago, the so-called memecoin was worth just $315 million.

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