Dogecoin In 2022: Is This Meme Coin Still Worth It?
Since 2020, cryptocurrency has experienced an unprecedented rise in value and mainstream adoption. However, while this was to be expected from celebrated tokens like Ethereum and Bitcoin, it was not expected to be the case for meme coins like Dogecoin (DOGE). Contrary to what its critics have said, though, Dogecoin has continued to reap the benefits of the crypto boom.
By Mitchell Alston
April 12th, 2022
In fact, just this April, investors who trade Dogecoin saw a 9.2% value spike. Despite this impressive rally, though, some are rightfully wary of investing in DOGE. After all, is a coin based on a joke really worth investing in?
From Joke Coin to Asset Class
First introduced in 2013, Dogecoin was created by software engineers Billy Markus and Jackson Palmer as an alternative token that poked fun at the wildly speculative crypto industry at the time. Hence, why it even uses the popular doge meme as its face. Though the coin was never really intended to be anything but a satirical token, it quickly gained a following that appreciated its sarcastic origins. Ironically, this then catapulted Dogecoin into one of the most popular cryptocurrencies to date. This was only further enhanced when billionaire and crypto enthusiast Elon Musk publicly backed Doge. By May of 2021, this saw Dogecoin become a leading crypto asset with a market capitalization of more than $85 billion.
To further add legitimacy to Doge’s value, it has become one of the few cryptocurrencies accepted by companies and institutions. Notably, Tesla CEO Musk once again proved his loyalty to the meme coin by accepting it as a means of payment to his company. After an infamous falling out with Bitcoin, Tesla now solely accepts Dogecoin. This means that those who support Tesla can complete their purchase with Dogecoin. Some of the items which can be bought with Doge include branded belt buckles and children’s all-terrain vehicles—though these are all currently sold out. Aside from Tesla, surveys in 2022, reveal that up to 29% of business owners in the United States plan to accept Doge as payment within the year. This acceptance by mainstream stakeholders has made Dogecoin the most successful meme token by far.
Dogecoin’s Value According to Critics
Despite showing a relatively consistent market performance, not everyone is laughing along with Dogecoin. A significant number of investors still think that Doge is nothing more than a worthless token. Some critics have even gone so far as to call it a Ponzi scheme. The real-life Wolf of Wallstreet Jordan Belfort himself recently shared that he finds Dogecoin to be a scam. He went on to say that crypto (but specifically Dogecoin) only serves to separate people from their money to benefit the wealthy larger stakeholders. This allegation, of course, must be taken with a grain of salt as many early investors have also reported reaping up to 100% returns.
To Invest or to Skip?
So when all is said and done, is Dogecoin still worth investing in today? In a nutshell, yes. But only if you do your due diligence and invest wisely. For starters, this means minimizing your risk by choosing the right exchanges. While crypto itself is unregulated, those who want to buy Dogecoin should opt for platforms that are regulated themselves. This is because regulated platforms are required to meet certain requirements that offer more security for investors. These safety nets can vary, but in Canada, this includes working with qualified custodians. These custodians use hack-proof cold storage with multiple fail-safes. Consequently, by signing up with such regulated platforms, you still have somewhat of a safety net should you invest in volatile assets like Doge.
Aside from this, it’s also important to pin down an investment strategy. While this will vary on your personal circumstances, keep in mind that a meme asset like Doge may need a more nuanced approach. For many successful meme token investors, this includes “paper-handing” their tokens rather than hodling. In this way, you can take advantage of sudden price surges without holding on to any one speculative asset for too long. This is an especially helpful investment approach given that analysts predict those who sell Dogecoin are better off following a meme trader mentality. This means, quickly letting go of investments for the next big thing. This allows you to keep up with asset relevance and social trends.
Ultimately, we can’t expect Doge to ever gain the same prominence as BTC, ETHER, or SOL. Regardless, though, Dogecoin will continue to be a relevant asset for the foreseeable future. Though it may not be the most secure token to invest in, investors who approach this coin with a level head and solid exit plan can find themselves laughing all the way to the bank.
Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of the content on this site such. We do not recommend the purchase, sale, or holding of any cryptocurrency or other product. None of our content should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please consider doing your own research and prioritize consulting a certified financial professional before making any investment decisions.