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TikTok challenge made this cryptocurrency spike. Here’s what happened

Dogecoin spiked 683% after a viral TikTok video urged people to buy the coin.

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This Tuesday, Feb. 25, 2020 photo shows the icon for TikTok taken in New York. From the perspective of teens flooding onto TikTok, the Chinese-owned online video app is a major new outlet for self-expression, one proudly home to the silly, the loud and the weird. To others, though, the service is an unnerving black box that could be sharing information with the Chinese government, facilitating espionage, or just promoting videos and songs some parents consider lewd. (AP Photo)

This Tuesday, Feb. 25, 2020 photo shows the icon for TikTok taken in New York. From the perspective of teens flooding onto TikTok, the Chinese-owned online video app is a major new outlet for self-expression, one proudly home to the silly, the loud and the weird.

Associated Press

The meme-based cryptocurrency, Dogecoin, has made a 683% volume spike over the past few days due to a TikTok going viral encouraging people to buy Dogecoin.

Back in June, TikTok user James Galante made a TikTok explaining to users why they need to invest $25 in the coin. Since then the video has almost 1 million views and he has continued to create several other videos.

Galante claimed in his video that, “Dogecoin is practically worthless. There are 800 million TikTok users. Once it hits $1, you’ll have $10,000. Tell everyone you know!”

According to Market Insider, the meme-based coin spiked above $878 million Wednesday afternoon, from their daily average volume over the past year, which is a 683% increase.

Dogecoin addressed the public on their official Twitter Wednesday, urging people to be mindful of the intentions people have when they urge you to buy something.

On July 6, a single Dogecoin was worth $0.0023, and since it’s been climbing. On July 8, at 9:45 p.m., it hit its highest price at $0.0052 a share. Currently, July 9, it is at $0.0042 a share, according to Yahoo! Finance.

Creator and founder of Dogecoin, Jackson Palmer, referred to it as a “joke cryptocurrency,” creating it after the Shiba Inu dog meme that went viral overnight in 2013.

According to CCN, this is an informal Ponzi scheme, and initial investors are likely to profit while newcomers are likely to waste their money.

The hashtag, #dogecoinchallange, is still trending on both Twitter and TikTok.