Dogecoin was initially started as a joke. However, the meme-inspired token has recently shown how unpredictable investors, as well as the entire crypto market, can be.
The project, launched as a satire about the hype around Bitcoin, has recently made it to the ranking of the top 10 digital coins in terms of market capitalization. Thanks to the attention of particular people, the market capitalization of the joke token, that portrays a shiba inu dog, skyrocketed to $10.5 billion before pulling back.
Dogecoin’s stellar run was initiated by Tesla’s founder Elon Musk and famous American rapper Snoop Dogg. Elon Musk called the digital coin "the future currency of Earth" and released a one-minute video on Dogecoin breaking records, leaving other e-cash behind. "Dogecoin to the Moooonn," Musk wrote in his tweet. Meanwhile, Snoop Dogg tweeted a parody of one of his album covers with the words "Snoop Doge" and the doge image covering the rapper’s face.
The posts boosted the token’s value. On the one hand, all this looks like a joke. On the other hand, crypto market players are concerned about the future of the industry. The thing is that such unreasonable price hikes can create a serious bubble in the market, leading to widespread bankruptcy in the long run.