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Dogecoin may sound like a success. But there’s a case not to buy into it, too

Dogecoin has surged in recent weeks. But this cryptocurrency executive doesn’t buy the hype

Cryptocurrencies dropped in value recently. When it rebounds, it might double
An illustration of a dog bowl with coins in it, a reference to Dogecoin.
Illustration by Alex Cochran, Deseret News

There’s no doubt that Dogecoin has a serious amount of hype around it right now. The cryptocurrency has risen somewhere around 11,000% since the beginning of 2021, according to MarketWatch, and that’s a jump no one can ignore.

Well, except for Adam Zadikoff, COO of BRD, a popular cryptocurrency wallet platform.

Is Dogecoin a good buy right now?

Zadikoff recently told CNBC he doesn’t expect the hype around Dogecoin to last too much longer, which is why he hasn’t bought into the cryptocurrency yet.

  • “My guess is that (the rally) won’t last, especially for something like Dogecoin which was never meant to be a payment system or a store of value,” Zadikoff told CNBC. “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.”

Why Dogecoin rises quickly

For the most part, Dogecoin is fueled by social media excitement. Dogecoin’s value rises anytime celebrities like Dallas Mavericks owner Mark Cuban or Tesla CEO Elon Musk talk about it. In fact, anytime people talk about Dogecoin there’s a chance it will rise in value. If more people talk about it, more people buy into it and then the value goes up.

This is why some experts expect the value to soar if Musk talks about Dogecoin on “Saturday Night Live” this weekend, as I wrote about for the Deseret News.

  • “You see the power in social media to move people to do something en masse,” Zadikoff told CNBC.

So should you buy Dogecoin?

Zadikoff said Dogecoin is a good buy for some, but not all.

  • “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.”