Dogecoin’s Wild Ride: Crypto Enthusiasts Howl as Rumored Mascot Demise Causes 9% Swing

"Dogecoin's Rollercoaster Ride: False Mascot Death Rumor Sends Crypto Market into Chaos"

Dogecoin, the popular meme cryptocurrency, experienced a sudden surge of 9% following a social media rumor about the death of its mascot. However, this rumor turned out to be false, causing frustration among crypto market observers. The price of Dogecoin (DOGE) reached a high of 8.3 cents after a screenshot of a Telegram conversation in Japanese, allegedly confirming the death of Kabuso, the token dog for the cryptocurrency, was posted by a pseudonymous user named TraderAguila. Shortly after, the user deleted the post and made their account private, admitting that the screenshot was fake. Eventually, the account was deleted altogether.

Despite the retraction, DOGE only partially retracted its gains and settled around 8 cents, which was still higher than its pre-fake news value of 7.7 cents. This incident further fueled concerns about market manipulation and the speculative nature of the cryptocurrency industry. “The charts people are painting while speculating over the death of an animal make me think we’re either all going to hell or we’re already there,” remarked Tree of Alpha, a widely-followed crypto market observer. Additionally, the swift price swing resulted in significant losses for leveraged DOGE traders. Within an hour, over $674,000 worth of leveraged derivatives trades were liquidated, surpassing liquidations in other crypto assets, including bitcoin.

Dogecoin, which originated as a joke cryptocurrency in 2013, has gained a substantial global following, including prominent figures like Elon Musk. Its market capitalization currently exceeds $11 billion. The recent events unfolded during a time when the crypto market is receiving increased attention, particularly in anticipation of regulatory approval for a bitcoin exchange-traded fund (ETF) in the United States. Such approval would be a significant milestone for the industry’s development.

It is worth noting that bitcoin (BTC) also experienced a brief price spike in October due to false information spread by the crypto-focused news outlet CoinTelegraph. The outlet mistakenly tweeted that asset manager BlackRock’s ETF application had been approved by regulators.

Overall, the incident involving Dogecoin highlights the volatility and susceptibility to misinformation within the cryptocurrency market. While the industry continues to attract attention and awaits regulatory advancements, it is crucial for investors and observers to exercise caution and verify information before reacting to rumors or unverified claims.

Martin Reid

Martin Reid

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