CoinShares chief strategy officer Meltem Demirors says the recent Dogecoin (DOGE) outbreak is a sign that the crypto mania is just beginning.
In a new long Twitter thread, Demirors analyzes the reasons why Dogecoin, which has pumped over 400% in just two weeks, is on the rise and leads its resurgence on the WallStreetBets (WSB) subreddit and member reaction to the press back that surrounds the group’s crypto guidelines.
Explains to Demirors,
“On Wednesday, before the listing of COIN (Coinbase), the WSB moderators changed their ban on crypto discussion to be able to talk about three cryptocurrencies – Bitcoin, Ethereum and … you guessed it … DOGE. As you can imagine the WSB community was wild …
Less than 24 hours later, the mods overturned this decision and announced that they would ban all crypto chatters in the forum indefinitely. The ban was reportedly a response to this Bloomberg Business article claiming WSB mods bowed to the pressure. Now when we’ve learned about the good people at r / wsb they don’t want to know what to do. So is this a revenge pump? “
Demirors doesn’t want to know for sure whether the above chain of events exactly led to Doge’s staggering rise, but does point out that the asset was exposed to greater 24-hour trading volume than SPY, an ETF designed to track the performance of the S. & P 500.
“All I know is this: SPY, the most widely used and traded ETF, traded around $ 25 billion in yesterday’s session.
DOGE, the popular meme coin (sorry Dentacoin), has traded around $ 70 billion in the past 24 hours.
Wrap your brain around it. It’s a crazy city. “
The CSO tells its 160,000 followers that the pump likely has nothing to do with the basic properties of Dogecoin, as its most recent development was submitted to Github two months ago.
“Check out the DOGE repo on GitHub …
Sometimes things defy expectations. We are definitely in a super interesting market cycle right now. The trend is your friend. Put away your galaxy brain IQ. It doesn’t make sense where we are going. “
Demirors closes their thread, claiming that DOGE’s wild rally is a signal that crypto mania is only scratching the surface.
“People have spoken and people want DOGE. The power of memes moves markets. You absolutely love to see it.
It’s going to break people’s brains and we’re just getting started. “
At the time of writing, DOGE is up 13% in the past 24 hours.
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Featured image: Shutterstock / Sergey Nivens