Now that we have a quite thick flow of new users, I think it's time to talk about the way celebrities manipulate cryptocurrency investors (especially newbies!) to put their money into a specific coin.
Back in December 2020, Elon Musk
posted a tweet that reads:
"One word: Doge". As simple and pathetic as it sounds, the tweet sparked a never-seen-before Dogecoin bullish ride.
- Am I late to invest in Dogecoin?I am not the best financial advisor so don't take my advice for granted, but I think this is a late and very risky move to make.
On the charts, it looks insane. One who's missed the investment opportunity may think that a lot of people have become rich in the last few months.. but the reality is very different to what the graphs show.
In reality, most of the people who've bought have actually done it only recently. They've done it
after the market went bullish. In other words, most DOGE investors that are now still in the markets are late investors still hoping for another bullish run to begin. But if you have not joined the bullish ride before it began, you are likely on a loss right now.
Why?We are humans. We feel emotions and, for most of us, emotion almost always overtakes instinct. With that being said, when you take a look at an impressive graph such as DOGE's, you might get the
fear of missing out.
If you've missed out on a cryptocurrency bull run, you're likely not going to catch up the Train of the Rich again but be left behind instead. And if you try to catch it, what you're doing is.. you're helping the Rich get rid of their bags, making their train more lightweight and hence faster while you, on the other hand, are going to get heavier. Once a cryptocurrency goes through an ATH, expect the richest bagholders to sell their bags. Whenever they do that, they don't care about helping the coin's price increase anymore. All they care about now is redeeming their own wealth, by dumping their holdings onto potential buyers like
you.
- But it was Elon Musk who mentioned DOGE.. it should be a good investment!No. Just because a celebrity posted a tweet in which they mention a specific cryptocurrency does not make it worth more than it used to be. However, smarter and more experienced investors know how to take advantage of this situation in which you are emotionally weak.
Once Musk tweets, the majority of his supporters will likely immediately go over crypto exchanges and purchase the coin he supposedly supports. But there is one thing we apparently forget: Musk could be holding some DOGE himself, so what tweeting its name truly does is.. it allows Musk to multiply his fortune through 3-word tweets.
The ending of these scenarios are usually quite dramatic. Before Musk started doing this with DOGE, back in 2017 another celebrity has done the same. The results? A lot of people have invested in the currencies he promoted, and whoever has been holding these currencies ever since has lost a ton of money.
On the 17th of December 2017, McAfee
tweeted about Monero, Verge and Zcash, naming them cryptocurrencies that "cannot lose". Immediately afterwards, Verge
had a massive price surge. Three years later, Verge is still in a struggle: it's more than 14 times lower than its ATH, it is currently sitting on the 104th rank on CoinMarketCap and it's been through a number of 51% attacks, the most recent one being..
yesterday!
- So what do I do? How do I get rich?Trust me - if any of us knew the recipe for getting rich, we'd either keep it for ourselves or everyone would know it. But I am quite sure there is no specific recipe. You need to think your investments thoroughly and smartly.
Ask yourself:
what will DOGE ever truly serve as? Because the most common answer is..
it's a meme. Do you really see a future where the world adopts a meme as a daily-driven currency? So.. does it really have a future? That is for you to decide on your own.
The main point is, ask questions yourself and seek the answers for those you don't have one yet. Critical thinking is the key when it comes to analyzing whether a choice or an investment is worth it or not - and think logically: a celebrity is not a crystal ball and they certainly aren't someone willing to make you rich.
This reminds me hours ago after the burial of my uncle due to bone cancer (not COVID, but he was cremated). One of my cousins shared to me that she bought Dogecoin because of Elon Musk’s tweet, and she profited when it reached $0.08. Although that it’s not really that bad, but it’s only good for short term rise. She asked me if Dogecoin is great for long-term because of Elon Musk’s tweets, but I educated her on how to determine both short and long-term coins or tokens base on the real use cases.
As for Dogecoin, it’s just a funny meme coin with no real use case. It only pumped due to Elon Musk’s tweet, but the trend will eventually die down fast and may not be good for long-term holding.
