The meme-based cryptocurrency Dogecoin (CRYPTO: DOGE) has made headlines across the world following a resounding price rally induced by tweets from Reddit’s WallStreetBets traders and Tesla Inc (NASDAQ:TSLA) CEO Elon Musk.
What Happened: Musk’s regular tweets about DOGE caused a short-term price rally on each occasion, but the overall sentiment about the Shiba-Inu-themed cryptocurrency does not appear to be optimistic.
A UK-based crypto exchange, EXMO, asked traders what they thought about Musk’s impact on DOGE’s price and only 14% believed that the coin would continue to grow without the support of Musk and other celebrities.
See also: How to Buy Dogecoin
While around 35% said that they couldn’t predict the future outlook for DOGE for sure, 16% were confident that DOGE is a “useless asset.”
The majority of traders believed that Musk’s impact on the price of the cryptocurrency is considerable – however, a third of EXMO’s traders noted that the resulting price pump, which followed Musk’s tweets, would be a short one.
Why It Matters: Unlike Bitcoin (CRYPTO: BTC), which has managed to attain a “store of value” status by prominent institutional investors, Dogecoin appears to be far away from achieving a truly legitimate status.
The same group of traders believed that Musk’s tweets would have a far lower impact on Bitcoin’s price than they would on the price of DOGE.
Some prominent names in the crypto space have also expressed concerns over the impact of Musk’s tweets on retail traders who are new to the space.
Galaxy Digital CEO Mike Novogratz told CNBC that the Dogecoin rally reminded him of the GameStop Corp (NYSE:GME) craze.
“It’s a meme,” said Novogratz, adding, “It was funny for a little bit, but now it’s at a market valuation where people are going to lose lots of money in Doge.”
Price Action: The price of DOGE was at $0.05554 at press time, gaining 1.54% in the past 24-hours. Most cryptocurrencies were trading higher this week, including Bitcoin and Ethereum (CRYPTO: ETH), which were trading around $56,000 and $1,780 respectively at the time of writing.
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mage: Brock Wegner via Unsplash
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