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Dogecoin soars to the moon. What to know before you invest

Is it too late to invest in Dogecoin?

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An employee shows her mobile phone as she calculates the amount of the purchase in “Petro” at a store in Sabana Grande Boulevard where the Venezuelan cryptocurrency, Petro, is accepted in Caracas, Venezuela, Monday, Dec. 30, 2019.

An employee shows her mobile phone as she calculates the amount of the purchase in “Petro” at a store in Sabana Grande Boulevard where the Venezuelan cryptocurrency, Petro, is accepted in Caracas, Venezuela, Monday, Dec. 30, 2019.

Matias Delacroix, Associated Press

Dogecoin is having a moment because today is officially #DogeDay. Now, the question becomes whether or not you should invest.

What is Dogecoin?

Dogecoin is a cryptocurrency that has humble beginnings as an online meme of sorts. The logo for the coin is of the Shiba Inu dog, which is an online internet meme of itself, as I wrote for the Deseret News.

  • But the cryptocurrency has made headlines in recent weeks because its value has gone to the moon. Dogecoin was worth as low as $0.0023 back in summer 2020. Now, it climbed up to $0.10 in value — and some reports of it being closer to $0.19, as I explained for the Deseret News.

Why is Dogecoin spiking so much?

The jump in value came after Coinbase— an app that allows people to buy and cell cryptocurrency — went public earlier this week, CNN reports. Dogecoin jumped in value along with other forms of crypto, including Bitcoin and Ethereum.

Should you invest in Dogecoin?

There are always questions about investment when it comes to cryptocurrency, especially now that the value is spiking. But there are some questions about investment.

George Chrysochou, investor and global marketing manager for Financer.com, told US News and World Report that investing doesn’t make sense right now.

  • “The project is community-driven since its inception and never received institutional adoption,” Chrysochou said. “It has no official road map nor a white paper. Its founder and leading developers ceased working on the project in 2015, and on several occasions, mentioned that they believe it’s overpriced.”
  • “Without a proper team, technological development and road map, Dogecoin will likely not be a reliable investment in 2021,” Chrysochou said.

There’s also the argument that those with expendable cash should buy $500 in Dogecoin to learn more about how investments work, according to InvestorPlace.com. Getting a taste of the stock market can give you an idea of how to invest more in the future without ruining your retirement funds or putting you in debt.

Regardless, it’s important to remember that Dogecoin is only worth what people invest in it. And the cryptocurrency isn’t worth a lot so it’s not really meant to make money. According to Benzinga, Dogecoin is actually about a global movement to make memes soar to the moon.

“An investment in Dogecoin is not about making money (although it may happen accidentally) it’s about being a part of something bigger,” according to Benzinga.