Reports state that a mysterious Dogecoin investor holds 28 percent of the entire cryptocurrency with an investment of a whopping $22 billion and the identity of the investor is not revealed. Also, 68 percent holdings of the Dogecoin market is under the influence of a few celebrities and business tycoons and only 32 percent belong to day-to-day investors hoping to make it big.
While investors hoped Elon Musk's Saturday Night Live (SNL) performance would boost Dogecoin's possibility to touch the glorious and much hyped $1 mark, the crypto slipped the opposite direction as soon as the Tesla CEO mentioned the word ''doge''.
The meme-currency dipped drastically, falling 40 percent but stabilized at around $0.50 after a few hours.
Financial experts have warned that Dogecoin's rise and fall are merely based on the hands of a few celebrities and tycoons who own maximum stake and their excess influence on the crypto is a recipe for disaster.
The fact is, Doge has no underlying value like Bitcoin and Ethereum and is solely based on the whims and fancies of a few big sharks, who have safely wrapped the coin in a mystic bubble that would burst soon.
A normal investor has been made blind to the bubble as social media memesters are working overtime with hyping up the coin on Reddit and Twitter luring new investors to pour in their money and have created a magnified herd behavior. Day-to-day investors will learn it the hard way during the next market crash, revealed Adam Morris.
The big sharks, who own a majority of 68 percent stake in Dogecoin enjoy the free publicity being dished out and will sell their holdings at the appropriate time, swallowing the money of all the new investors leaving them high and dry and a lesson learnt the hard way.
Crypto Market Might Soon Face a Bloodbath
Financial expert Adam Morris, the co-founder of Crypto Head revealed that the crypto market might soon face a bloodbath, similar to the crash of 2018 and predicted that Dogecoin might be the first to fall in the next crash and may slip to as low as 95%.
''When it's risen by 1,260 percent in the last month you can see why retail investors would be attracted to invest. It's coins like this that are first to drop 95 percent in a market crash, which has already happened in the 2018 crash,'' said Adam Morris to Express.uk.
One reason people are buying into Dogecoin, Morris says, is because there is potential to make short-term gains. However, he revealed that this sort of mentality makes Doge a poor choice for long-term investment options.
Morris predicted that Ethereum is a good choice for investors and would reward them handsomely in the coming years. ''Long-term, Ethereum is set to be a powerhouse in the crypto industry,'' he summed it up.