© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Dogecoin is the new GameStop – Are investors going to get burned?
Posted 21st April 2021

Dogecoin is the new GameStop – Are investors going to get burned?

Dogecoin has become the new GameStop, with frenzied trading potentially going to deliver a bloody nose to novice investors, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Dogecoin is the new GameStop – Are investors going to get burned?
dodgecoin

Dogecoin has become the new GameStop, with frenzied trading potentially going to deliver a bloody nose to novice investors, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The warning from Nigel Green, the chief executive and founder of deVere Group, comes as the market capitalisation of Dogecoin hit almost $45 billion on Friday, and its price has risen by 400% in the last seven days.

The memecoin was created in 2013 as a joke, poking fun at the rise of established digital assets such as Bitcoin. Dogecoin was inspired by the popular Doge meme, which offers the image of a Shiba Inu looking sideways at the camera with raised eyebrows.

Mr Green says: “Dogecoin is the new GameStop. The out-of-favour bricks and mortar videogame retailer rocked Wall Street in January when a group of small-scale mainly inexperienced investors, led by a frenzy on Reddit, sparked a historic short squeeze where they drove up its stock prices.

“This week, since Reddit lifted its ban on the discussion of three cryptocurrencies – Bitcoin, Ethereum and Dogecoin – activist investors and also some celebrity investors on social media have been urging others to invest their cash into Dogecoin – their new pet populist bandwagon.

“In the same way that the GameStop frenzy was pitched as a battle-play of ‘Wall Street versus The Little Guy’, Dogecoin is being pitched as a battle-play against the well-established crypto giants like Bitcoin.

“But this is not typically the way reasoned, savvy investors should strategise to create and build their portfolios in order to reach their financial goals.

“We can expect many novice retail investors – who may not have the financial resilience needed – to get burned in the Dogecoin frenzy – in the same way they did with the GameStop one.”

The deVere CEO says that investors should avoid being drawn into the hysteria driven by social media and look at the fundamentals of the different cryptocurrencies.

“It’s very hard to compare Dogecoin with the likes of Bitcoin, which runs on ground-breaking tech and has a limited supply giving it scarcity value, amongst other valuable attributes; and Ethereum, which is solving real-world issues and providing in-demand business solutions. For these reasons, amongst others, they are attracting huge institutional investment.”

“Whereas we can assume that many people have been buying Dogecoin, not because they think it has any real value, but because they hope others will get FOMO (the Fear of Missing Out), jack the price up, and then they can sell off and make a quick profit.”

Mr Green reiterates a message he gave in January at the height of the GameStop mania.

“If you do want the thrill or novelty of chasing big gains led by activists on social media, you really should make sure that you have a sound, diversified, long-term financial strategy established in place first,” he affirms.

Categories: Finance


You Might Also Like
Read Full PostRead - Eye Icon
Thorndyke: Trusted Independent DOOH Verification
M&A
12/09/2023Thorndyke: Trusted Independent DOOH Verification

Headquartered out of Sydney, thorndyke is an Australian company that delivers independent third-party measurement and verification for advertisers and media owners in the DOOH (Digital Out-Of-Home) space.

Read Full PostRead - Eye Icon
Planning to Sell or Exit a Business? Here’s What You Need to Know About Succession Planning
News
05/10/2023Planning to Sell or Exit a Business? Here’s What You Need to Know About Succession Planning

When considering exiting or selling your business, there are two key things to consider; succession planning and preparing your business for sale.

Read Full PostRead - Eye Icon
Benefits of Using a Load Board for Successful Freight Management
News
18/09/2023Benefits of Using a Load Board for Successful Freight Management

Timely deliveries and efficient operations are paramount in the freight industry. To that end, load boards emerge as the digital highways connecting shippers, brokers, and truckers. These platforms, often overshadowed by the physicality of trucks and cargoes,

Read Full PostRead - Eye Icon
Investing in Yourself
News
01/06/2021Investing in Yourself

At the end of the day, if you want to become an expert in business, that means that you're going to be spending a lot of time making investments. Some of these investments may seem obvious: You'll have to invest in equipment, real estate, and employees. Some i

Read Full PostRead - Eye Icon
Time Flies – Luxe Watches Enters Fifth Year With Agency Partner The SEO Works
M&A
10/04/2024Time Flies – Luxe Watches Enters Fifth Year With Agency Partner The SEO Works

After yet another year of impressive growth with award-winning digital agency The SEO Works, leading luxury watch specialist Luxe Watches has decided to extend the partnership into a fifth year.

Read Full PostRead - Eye Icon
The Future of Independent Validation and Verification
News
08/04/2022The Future of Independent Validation and Verification

For the better part of two decades, OnShore Technology Group has been leading the independent validation and verification industry.

Read Full PostRead - Eye Icon
Things To Consider When Choosing Legitimate Money Lenders
Finance
15/10/2020Things To Consider When Choosing Legitimate Money Lenders

Fintech ventures have changed the borrowing system, making it more accessible and reliable. This revolution has made private money lenders pose a constant threat to traditional banks. However, the current economic climate and popularity of this business have m

Read Full PostRead - Eye Icon
Considerations When Securing a Loan Against Your Property
Finance
15/10/2020Considerations When Securing a Loan Against Your Property

Securing a loan against your property for any reason comes with a degree of risk by its very nature. Some loans such as mortgages will of course need to be secured against a property, whereas in other cases, you may not need to secure the loan against bricks a

Read Full PostRead - Eye Icon
Citius Pharmaceuticals Completes Acquisition of Leonard-Meron Biosciences
M&A
05/04/2016Citius Pharmaceuticals Completes Acquisition of Leonard-Meron Biosciences

Citius Pharmaceuticals, Inc.today announced completion of the acquisition of Leonard-Meron Biosciences, Inc.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow