It’s no secret that Dogecoin is rising in value, hitting all-time high after all-time high. But a new theory from investors posits that a single, wealthy investor — nicknamed a “whale” — is suppressing the value.
Dogecoin soared to $0.70 on Wednesday morning after a major day on Tuesday, where the meme-based cryptocurrency hit a new record high after a new record high. On Tuesday, Dogecoin climbed from $0.50 to $0.69 in value, hitting a $0.70 max value. The value dropped a little bit on Wednesday in the $0.62 range. But it still hasn’t hit the $1 mark that so many Dogecoin fans desire.
Why hasn’t Dogecoin reached $1 price?
According to InvestorPlace, multiple Reddit users — who help fuel the price and value of Dogecoin — believe “that a single whale is keeping the price of DOGE down by selling off millions of the tokens every hour.”
- “DOGE investors on the forum are buying into the idea that one large whale is responsible for the price suppression theory,” according to InvestorPlace.
Of course, others suggest it might be large investors all cashing out their Dogecoin holdings because of the high spikes in value. Basically, they’re cashing out while they can secure the bag.
Why Dogecoin is a risky investment
This is what makes Dogecoin a difficult investment. You don’t know how quickly the value is going to change because much of the success is based around social media hype, according to Adam Zadikoff, COO of BRD, a popular cryptocurrency wallet platform.
- “Yes, you can make a quick buck if you time it right, but timing the market is a terrible thing to try to do. It does not work,” he told CNBC
- “It’s great if you have some disposable income and you’re playing around and you’re having fun with it,” he said. “The danger is you’re the last person holding the bag.”