17 July 2020
“Let’s all get rich.”
This was the rallying cry of James Galante, a small account by TikTok standards with 5,700 at the time of his call to action video. He petitioned his followers to “tell all your friends” and told them of the humble Dogecoin. But is a viral TikTok video all it takes to change the sentiment of a cryptocurrency?
Dogecoin has been a relatively minor cryptocurrency. Named for an ever popular and ever evolving meme, it is by all accounts a meme in of itself. It was introduced in 2013 as a “joke currency” but since its creation, the Dogecoin price has increased, if only slightly. It was primarily a method of tipping content creators over social media and considered a low-risk investment. However, without enough growth in value, it has always been difficult to suggest whether Dogecoin is worth investing in. Until now, Dogecoin sentiment has always been low compared to other cryptocurrencies like Bitcoin.
This audience though, were there and were ready to buy into James’ experiment. For all the constant stream of articles, tweets, posts and stories surrounding Bitcoin, suggesting huge price increases in the coming years and breaking resistance levels between $9,000 and $10,000 and more importantly, staying above $10,000, it was this small community of TikTok users that generated the biggest percentage movement the Crypto has seen in some time.
“Dogecoin is practically worthless.”
At the time James Galante launched his video, Dogecoin was priced at $0.0023. He suggested to his followers and the subsequent 900,000 viewers of the video that “Once it hits $1 you’ll have $10,000.” A Dogecoin surge would still have required a significant investment of $10,000 from anyone who decided to take up the challenge, alongside a serious liquidity increase for anyone who intended to subsequently cash in if the price of Dogecoin had reached $1.
At the time of the video, the daily volume of Dogecoin was $64,000,000, quite modest by Crypto standards, but by the 9th July the volume had reached a whopping $1.2billion with a price of $0.0052. Still some way off the $1 that James was hoping for in order to cash in his ten thousand dollars, yet undoubtedly an immense demonstration of the power which sentiment plays in crypto liquidity.
Today and in the last few days everything has settled down again. Dogecoin sits at $0.003, still higher than before the wave of TikTok users took to the exchanges trying to make the Dogecoin movement happen and make some quick money in the process. Likewise, the volume, though no longer over the heady heights of $1billion a day, is double the prior levels at $120m.
It has been an interesting week to follow crypto and to see sentiment-based experiments like this shows that being aware of where the best crypto volume and liquidity is to be found on any given day, even if dealing with small sums like Dogecoin, can provide opportunities for the savvy social media follower. Will Dogecoin ever reach $1? Perhaps there is a big future ahead for Elon Musk’s favourite cryptocurrency?