Dogecoin — the meme-based cryptocurrency — is having a moment in the spotlight.
The cryptocurrency began in 2021 with a value of about $0.0097. It’s now worth around $0.60, representing a near 11,000% climb in value over a five-month period, as I wrote for the Deseret News.
- The cryptocurrency has become more valuable than major players like Honda, Snap and Ford, the car maker, as I wrote for the Deseret News.
But that doesn’t mean you should invest right now.
What to remember before you invest in Doge
According to CNBC, investing in Dogecoin presents an immediate risk because it’s a popular item that may not always be reliable.
- “But before you buy dogecoin in hopes of capitalizing on the gains, it’s important to remember that popularity and reliability don’t necessarily go hand in hand, and many have warned of the bubble potential of Dogecoin,” according to CNBC. “When it comes to a token like dogecoin whose value is extremely volatile, don’t invest any money that you aren’t prepared to lose entirely.”
Adam Zadikoff, chief operating officer at BRD, a popular crypto wallet, told CNBC that he doesn’t see the Dogecoin trend lasting too long.
- “My guess is that (the rally) won’t last, especially for something like Dogecoin which was never meant to be a payment system or a store of value,” he said.
- He added, “You see the power in social media to move people to do something en masse. This is the flash-in-a-pan thing that people are getting behind right now.”