Dogecoin, a Shiba Inu-themed digital coin that started as a joke and became the latest obsession for retail traders this week, plunged almost by half Saturday, sparking a flurry of posts on Reddit and Twitter begging coin holders not to panic sell.
The digital coin fell 46 per cent in 24 hours to US$0.02582 as of 4:35 p.m. in New York on Saturday, according to CoinMarketCap data. It recovered to US$0.03 Sunday, although still less than half of its Friday high, when a blistering sevenfold surge sent the coin to more than US$0.07.
Amid the rally, Robinhood temporarily halted instant deposits for crypto buying on Friday, citing “extraordinary market conditions,” a spokesperson told CNBC. Users could still use funds already deposited in the platform to buy cryptos.
Users on the Reddit thread SatoshiStreetBets — which describes itself as the “crypto version of WallStreetBets” — are imploring others to hold on to Dogecoin and not to switch to other cryptos.
“To those saying hype is over… we just saw proof over the past 3-4 nights of our collective efforts being effective. The moment we lose each other is the moment we fail,” one poster said. “Look at the way money is printed. Doge could potentially be used as well. Never say never.”
If You Hold, You’re A Big Dog. #DOGE
Panic Sellers Are Lil Pups. #dogecoin
— Dogecoin Rise 📈 (@DogecoinRise) January 30, 2021
Dogecoin became the latest obsession of retail traders partly because Tesla Inc.’s Chief Executive Officer Elon Musk posted an image on Twitter of a “Dogue” magazine cover featuring a whippet in a red outfit. Although no further explanation was given, many believed it’s a reference to Dogecoin.
In December, Musk’s tweet — “One word: Doge” — was also taken by some to refer to the coin.
— Elon Musk (@elonmusk) January 28, 2021