Planning to buy a coin due to a celebrity's tweet? Stop. You're doing it wrong.

[20kevin20]

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.

[Upgrade00]

A lot of people would view the 'richest man in the world' as a good source of investment advice and would jump in simply because he gives the idea that it's advisable to do so. Trading and investment is driven widely by emotions, which are affected by public perception. Asides the fact that Elon Musk is an influential financial personality, he's also pretty popular on social media and any post on any coin would bring huge publicity to it.
Critical thinking takes a lot of exertion and research, and most would rather just fomo in and hope it pays off.

I would assume this is one of the reasons, the inventor(s) of Bitcoin chose to remain anonymous. They would have wielded so much influence on the public sentiment of bitcoin, affecting its decentralization.

[Darker45]

Unfortunately, there is something terribly wrong with our culture. People are looking up at celebrities as if they are authorities, experts, institutions of subjects they actually know nothing about.

I am not saying Elon Musk knows nothing about crypto and DOGE. I'm saying people take the words of celebrities as if they are gospel truth.

From where I am posting, celebrities are fast becoming politicians, endorsers of all kinds of products and services and even people, critiques on politics, environment, social issues, and so on and so forth. They are rising to the top and are holding sensitive positions in the government. Alas, they are incompetent as they are stupid!

[akirasendo17]

That is really wrong that is why some people have a bad experience with crypto because they believe in a simple post, then blame it that all crypto is not a good, or a scam, for example, the DOGE if you really are an investor you just don't rely on a person post, you need to make some effort to research what is really going on, so that in the end you will not be stuck in the corner holding something that is not really profitable in the end.

[1miau]

Buying after huge price moves as a result from celebrities shilling a coin is always a bad decision. While there's no guarantee that lower prices will happen again, it's very likely but I would generally differentiate between random shitcoins, especially when shilled by a celebrity and solid coins (can be discussed controversially which coin is solid  )

But even for a solid coin, it's generally difficult to buy a dip because we never know, when a dip occurs. It could have happened, that Elon Musk shilled Bitcoin and a dip comes only after another 25% increase.
There are times when a price just keeps increasing and never comes back.
For example: Who would have bought here?



 

But I agree, people should take caution from celebrities shilling a coin and also take caution from uneducated YouTubers shilling their Shitcoin Bags. Every day every crypto YouTuber has a great, new Shitcoin. 
People should make sure generally: Do your own, detailed research and trust your decision because selling quickly again because of FUD or other irrational feelings will always be a bad decision.

[cryptoaddictchie]

The effect of this would always result to a short term profits. What can we do people loves a good hype. In terms of use case, we can't really say dogecoin can even match up to bitcoin or ethereum, however the only pros of it is being affiliated to the richest and brightest man on the world. What if dogecoin has been improved or use as a source of payment like bitcoin? Maybe perspective will change.

But recently Elon Tweeted to close your account and I will give you $ if necessary what does this mean? Is it a sarcasm or another hype for its to skyrocket?

[mk4]

While I'd definitely take Elon's tweets very lightly because he's obviously trolling(irresponsibly I'd say), it's funny how no one has mentioned the far worse obviously-paid-by-Justin-Sun tweets from people like Lindsay Lohan and Akon.

[philipma1957]

So I read above posts and I am saddened deeply that no one understands why doge is a good coin.

Op circled around the reason why doge is a decent coin when he mention verge coin suffered a 51% attack.

Doge is well backed by asic mining gear. It is not subject to a 51% attack as it is merge mined with Ltc.

the Ltc/doge combo is better than most ant.  alt coin 🪙.

Not Btc.

It actually serves a good way to move coins cheaply. Safely.

I did very well with Doge as I was touting it last year long before Musk did.

[mk4]

So I read above posts and I am saddened deeply that no one understands why doge is a good coin.

Op circled around the reason why doge is a decent coin when he mention verge coin suffered a 51% attack.

Doge is well backed by asic mining gear. It is not subject to a 51% attack as it is merge mined with Ltc.

the Ltc/doge combo is better than most ant coin 🪙.

Not Btc.

It actually serves a good way to move coins cheaply. Safely.

I did very well with Doge as I was touting it last year long before Musk did.

The fact though is, not because DOGE is "good" or useful(because it definitely has it's advantages) doesn't automatically make DOGE a good investment. The fact that development is dead and that it has pretty high inflation alone should be enough of a reason.

[20kevin20]

~

I see your point and DOGE certainly was (can't say it still is since it grew this much in price now) a great way to move coins around at a very decent fee. But can we say the same now that a single coin is worth over 5c?

I would have invested in it long time ago, but a few reasons were strong enough for me not to do so:
 - there have been lots of pumps and dumps in its history
 - the coin itself is treated as a meme and automatically generates the above
 - I have yet to hear about something new being developed for Doge that wakes my interest up

My Verge argument was there to bring this up to the average user's attention: an advertised coin doesn't make it a good investment just because the advertiser is a celebrity.

[TheNineClub]

I think I wrote about this on some other topic, but what I think is of value here is not that celebrity hype men and women are bringing in low tier investors to blindly invest in anything they say, but that they are providing some much-needed widespread coverage and with that (and with their credibility), might bring in some higher-ranked investors that were already involved with them and that, in return, could push forward new development, new financial backing and new projects to the table of the crypto world (I am of course talking about the serious business type of hype people, not Kim Kardashian wearing a Bitcoin T-Shirt).

However, this post should be read by all newbies that to easily fall under the influence of influencer investors.

[Taskford]

Actually I will follow with proper precaution on what type of coin they are tweeting it but with Doge? I can call it a good buy even if no Elon Musk presence since this coin is sitting around the corner with no one almost talk about him for such a long time and it has quite had a good volume so the pump is expected even before especially if the bull market came. But guess Musk saw it coming that's why he hype it up to gain more attention and good pumps.

[nakamura12]

I would still buy doge coin even if there is no celebrity tweeting about doge coin and I would take advantage of such tweet since many newbies will buy doge coin because of a celebrity tweeting three words. I have doge coin months ago and I even use some of it on gambling platform and even get profit.

[lovesmayfamilis]

The latest news writes that against the background of the growing interest in the coin, the Dogecoin developers have resumed the development of this cryptocurrency.
https://www.coindesk.com/dogecoin-surging-price-resurrected-technical-development


In general, knowing Elon Musk himself as a joker, and a person who always tries to be at the forefront, calls for investing in bitcoin should be considered a normal phenomenon. He himself writes that he is poorly versed in bitcoins, and if you look at the part that he invested in bitcoins, this is not a lot of money for him.
Therefore, I completely agree with the call to always rely on your mind, and not act on emotions.

[mu_enrico]

They will be on this list: https://www.google.com/search?q=celebrities+fined+by+sec
Not sure before 2017 the situation was like this, but I'm nervous about this 2021 pump because of Tesla, Ripple, and Tether.

[lovesmayfamilis]

Unfortunately, there is something terribly wrong with our culture. People are looking up at celebrities as if they are authorities, experts, institutions of subjects they actually know nothing about.

I am not saying Elon Musk knows nothing about crypto and DOGE. I'm saying people take the words of celebrities as if they are gospel truth.

From where I am posting, celebrities are fast becoming politicians, endorsers of all kinds of products and services and even people, critiques on politics, environment, social issues, and so on and so forth. They are rising to the top and are holding sensitive positions in the government. Alas, they are incompetent as they are stupid!

You are right, something has been happening to human minds lately. One has only to write a tweet, as coins become very popular.
Yesterday's news writes that Elon Musk decided to create his own coin, and he was asked to name the coin MarsCoin.


 And of course, after another tweet from Elon, the MARS token soared from $0.1 to $2.5 within an hour. Despite warnings from CoinMarketCap that the coin does not belong to Elon Musk, it continues to show high volatility

https://forklog.com/marscoin-vzletel-na-2500-posle-tvitov-ilona-maska/

[mk4]

Good point, but
1. Since Dogecoin is currently popular, there's possibility someone will contribute towards Dogecoin (whether it's the full node software or Dogecoin protocol itself)
2. While i agree the inflation rate is high, some people argue it'll be incentive to spend Dogecoin rather than hold it.

1. Definitely a possibility if DOGE gets more attention from here. That's some additional layer of speculation though, as if DOGE and cryptocurrencies in general aren't speculative enough to start with.

2. True. But then again, I don't think there's that much investment upside if people would just use DOGE for transactions(and not transactions AND hodling).

[Coyster]

The thing is, it's not only about Dogecoin, even if a celebrity or a rich individual tweets or talks about Bitcoin, one should not invest on the grounds of that, a prominent individual can always create hype around a coin and cause more people to garner interest on the coin for a particular time, or as long as the tweet or talk is still fresh or recent in the minds of such people, but when it no longer is, and thus the hype no longer present, if the coin isn't a good one, then it's flaws are exposed.

What I'm getting at is, a prominent individual can't 'talk or tweet' a coin into success, especially in the long run; if you believe in the network, then invest in the coin after doing your own research. Dogecoin prolly has it's own pros, but investing in it cause Elon said a thing or two is 'sinful'.

[mk4]

1. I agree. But if someone could tell Elon Musk about lack of technology development, he might do something about it (perhaps donation or make new development team).
2. I disagree, inflation means DOGE have more usage and adaption by merchant (especially major merchant) could attract more people to invest/use DOGE.

1. Yep. I've seen a few Twitter users recommending(but pretty much pushing) Elon to fund the previous DOGE developers. Not sure if it would amount to anything though, time will tell.

2. I'm really not arguing against the fact that people will use or invest in it. My stance is just that it's currently a really really bad investment. If development continues though, I probably could change my mind(though I doubt it). The only really bullish thing I have with DOGE is the meme, and it's sort of heritage— the fact that it was created as a joke but yet here we are.

[AniviaBtc]

Unfortunately, there is something terribly wrong with our culture. People are looking up at celebrities as if they are authorities, experts, institutions of subjects they actually know nothing about.

I am not saying Elon Musk knows nothing about crypto and DOGE. I'm saying people take the words of celebrities as if they are gospel truth.

From where I am posting, celebrities are fast becoming politicians, endorsers of all kinds of products and services and even people, critiques on politics, environment, social issues, and so on and so forth. They are rising to the top and are holding sensitive positions in the government. Alas, they are incompetent as they are stupid!

They are so amazed and easily be fooled by these popular personalities and they are very influential when it comes to persuading other people about crypto investments. These people are just a normal investor but the only difference is that, they hold a huge amount of it and they are already a successful person because of their career. Don't be fooled, never trust easily on what you are seeing in the social media. It is much better if you do your own research and gain experience with the crypto market and investments. Don't take their inspirational posts as the truth, they are just hyping what they have so take precautions when accessing the market and the social media.