- Dogecoin (DOGE) price has temporarily increased by 1,000% as a result of a pump by the infamous r/WallStreetBets group.
- While the GameStop stock pump is being hailed around the world as a “victory” against Wall Street, it could also result in tighter regulations.
The GameStop craze has hit the cryptocurrency market – and none less so than Dogecoin (DOGE). The popular “meme coin” isn’t exactly known for “big news” or development progress. In fact, the project has not been developed since 2015, after founder Jackson Palmer left the project.
However, this doesn’t stop Reddit group WallStreetBets from pumping DOGE. The group caused a worldwide sensation in recent days with the GameStop stock pump. r/WallStreetBets now includes 5.7 million people who discuss stock and options trading, as well as Dogecoin, on the Reddit. And their influence on some stocks is gigantic.
Dogecoin (DOGE) rockets to the moon by 1,000%
Thus, GameStop’s (GME) stock price rose 1,600 percent just because of this group. Dogecoin, however, is not too much behind. Yesterday, the DOGE price rose from $0.0075 to $0.0735, achieving an incredible price increase of over 1,000% within less than 24 hours.
At the time of writing, however, the hype had already cooled down somewhat. Nevertheless, Dogecoin made it to 10th place among the largest cryptocurrencies by market capital, with the meme coin even overtaking Bitcoin Cash, Litecoin, Chainlink and Cardano in the meantime to rank 6th. At its peak, DOGE was valued at more than $10 billion.
The r/WallStreetBets group is undoubtedly behind the explosive rise of Dogecoin price. The Dogecoin rally began as a result of a tweet from the “WSB Chairman.” The leader of the group then tweeted numerous other times about DOGE, including alluding to the viral TikTok video about Dogecoin from July 2020 and asking if DOGE had ever reached a dollar. Subsequently, numerous members of the Subreddit made several posts encouraging traders to buy DOGE.
Has Doge ever been to a dollar?
— WSB Chairman (@WSBChairman) January 28, 2021
After the hype exploded on Reddit, it spread to Twitter. As noted by The Tie, Dogecoin made history. For the first time, an altcoin managed to receive more tweets than Bitcoin in a 24-hour span. On Thursday, January 28, the number of daily DOGE tweets increased by a whopping 1,700% compared to the 30-day average. In total, there were about 90,000 tweets about DOGE in just the last 24 hours.
The retail investor revolt against Wall Street
The GameStop pump and its aftermath have now become a political issue. With multiple governments and lawmakers around the world calling for investigations into GME’s Reddit-fueled rally, the question is what regulatory fallout the events will have.
While the WallStreetBets group and the crypto community celebrate the “victory” against the “enemy,” Wall Street, regulators may overreact, which could have a negative impact on cryptocurrencies as a whole.
Sorry I missed your call, I was busy exposing Wall Street and watching Dogecoin moon.
— WSB Chairman (@WSBChairman) January 29, 2021
However, numerous U.S. politicians are also on the side of small investors. Both Republicans and Democrats came together yesterday to criticize Robinhood’s decision. The company restricted users from buying stocks like GameStop (GME). Republican Senator Ted Cruz therefore supported a statement by his colleague Alexandria Ocasio-Cortez, who sharply criticized Robinhood for the decision:
This is unacceptable. We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.