Baby Doge saw a huge price jump after Elon Musk endorsed the coin. Like always Musk’s tweet was able to push the prices substantially high than what it should have been. But as soon as the markets saw a downtrend and the hype of Baby Doge died down, the markets collapsed. The price increased continuously for almost 10 days but now the days seem to be over for Baby Doge as the price falls by 40%. This is the reason I have always stayed away from all meme coins as they run on hype and endorsements rather than fundamentals.
Meme coins are a gamble
I really appreciate Elon Musk for what he does at Tesla and SpaceX but his impact on the crypto markets is not good. The way he promotes meme coins always pushes their prices higher quite a lot. And people who are not aware of the situation FOMO in only to face losses. The same goes for Baby Doge as its price rise began on 1st July after Elon Tweeted about it. And in just 10 days the price increased by over 10 times. But now as the hype is fading away the price is also falling.
Those who brought at the top are already facing huge losses. And unless Musk tweets about it again I don’t see Baby doge rising to its peak in the near term. The worst part is after the success of Dogecoin we have seen so many random coins resembling Doge. Even though I am not an investor in Dogecoin, I do think it has a future due to the huge community. But for other coins that are trying to replicate it, they are nothing more than a pump and dump scheme.
Stay away from meme coins (NOT FINANCIAL ADVICE)
As Baby Doge falls by 40% it becomes more clear that hype is not everything. If the markets go bear completely and everything crashes then it is almost certain that Bitcoin, Ethereum and other fundamentally stable coins will rise in the future. But you can not say that certainly from such meme coins. It is even possible they just cease to exist or no one touches them again. So, investing in them is very risky. Very few people are able to make money off meme coins and hence it is my advice to maintain five feets from any such cryptocurrency.
What are your thoughts on the fall of Baby Doge? And do you agree with my idea of staying away from meme coins? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.