For the past week, TikTok members are sending messages like ‘Buy Dogecoin; make us all rich,’ or ‘Dogecoin is worth it, I swear!’
The price of the so-called ‘joke crypto’ has risen by 40 per cent in a few days.
Analysts say that people stuck at home are trying out all kinds of new investments, using discount apps like Robinhood to invest in stocks, for example. But others say that TikTok members are just having a good laugh at the financial system.
But the trend is escalating. In a video, which collected 800,000 views since its upload last week, @jamezg97 gives an exalting sales pitch for investment in Dogecoin.
Dogecoin was created after a Japanese kindergarten teacher posted an arresting image of her dog on the Web, and called it a ‘doge.’
Introduced as a “joke currency” on 6 December 2013, Dogecoin quickly developed a large following and reached a capitalization of $60 million in January 2014.
Dogecoin was created by programmer Billy Markus from Portland, Oregon, who wanted to create a “fun cryptocurrency” that could reach a broader demographic than bitcoin. Jackson Palmer, a member of Adobe Systems’ marketing department in Sydney, Australia helped make the idea a reality. Palmer purchased the domain dogecoin.com and added a splash screen, which featured the coin’s logo and scattered Comic Sans text.
There is, however, nothing funny about the coin’s success. Today, it has a market cap of close to $500 million, although the price is currently $.003908. This makes it cheap to invest in, and the currency has gained traction as an Internet tipping (gratuity) system, in which social media users give Dogecoins to users who provide clever content.