Digital currency dogecoin was first conceived of as a “joke” crypto by its creator Jackson Palmer. However, some traders are now viewing dogecoin as a serious investment. Coindesk.com data reveals dogecoin (DOGE) is trading at $0.055843 (£0.04) as of 9am on Monday, February 15.
This is a significant slump from the spectacular gains made last week, where dogecoin hit highs topping £0.75 (£0.54).
The rise of dogecoin – by more than 600 percent since the beginning of the month – has been fuelled by endorsements from celebrities such as Elon Musk on Twitter.
Some traders may interpret this abrupt reversal of fortunes to relate to he SpaceX founder saying on Sunday, February 14, he now supports major holders of the meme-based digital currency dogecoin selling most of their coins.
Elon Musk wrote on Twitter he felt too much concentration in dogecoin was the “real issue”.
“If they don’t, or ‘cheat’ by distributing their coins across multiple wallets, then it loses Elon’s endorsement. Easy decision for the whales. Do the right thing.”
Mr Musk responded with a gnomic “yup”, although it remains unclear how serious he is about dogecoin.
The South African billionaire told chat app Clubhouse in early February: “Occasionally I make jokes about dogecoin, but they are really meant to be jokes.”
Elon Musk’s electric car company Tesla revealed on February 8 it had purchased $1.5billion (£1.08billion) of the cryptocurrency bitcoin (BTC) and would soon accept the flagship crypto as payment.
How to buy dogecoin in the UK?
Dogecoin can be purchased from the UK as a peer-to-peer cryptocurrency.
This means, like other cryptocurrencies, such as bitcoin and ethereum, DOGE transactions can travel directly from person to person online without passing through traditional centralised institutions, like banks.
There are many ways to buy DOGE, with many finding it easiest to purchase dogecoin via trusted global exchanges.
You will also need a physical or digital crypto wallet in which you can securely store your cryptocurrency.
The official dogecoin.com website lists a number of digital wallets you can set up on your mobile phone or desktop.
However, crypto trader Scott Melker is one expert urging caution when toying with the idea of buying dogecoin.
He told Express last week: “I love DOGE. That said, it started as a meme and very much still is one. It should go without saying that Elon Musk is posting about DOGE simply for entertainment.
“Fun and games aside, there is a wallet that holds 27 percent of the supply, valued at around $1.2billion.
“The massive mystery wallet, plus the 19 other largest wallets, hold over 50 percent of the supply – not good tokenomics.
“Speculators have claimed that the mega wallets are in cold storage and owned by exchanges, but nobody knows for sure.
“DOGE is a great meme and riding the pump cycles is easy money. As an investment, it is pretty much worthless unless you like investing in jokes.”