The crypto’s atmospheric rise has purportedly paid off for some users. One social media user on Friday (April 16) released a picture of their investments in dogecoin on the Robinhood investing program. The user said, “Hey guys I just became a Dogecoin millionaire,” displaying a $1,081,441.29 balance.
Dogecoin, which was made by Jackson Palmer and Billy Markus, has its origins in the “Doge” meme that became popular in 2013. That image shows a dog next to illogical text in Comic Sans font. Dogecoin was meant for use as a quicker and “fun” bitcoin alternative. Te cryptocurrency has since garnered an expanding community on the web.
The cryptocurrency’s soaring price has brought about concerns of a possible bubble in the digital currency space. “Dogecoin’s rise is a classic example of greater fool theory at play,” Freetrade Analyst David Kimberley told the news outlet. That theory stipulates that prices increase because people are able to sell overpriced investments to a “greater fool,” which continues up to the point that there aren’t any greater fools remaining, according to Investopedia.
As previously reported, Dogecoin shares some characteristics with digital currencies in general, even the big dog of the group, bitcoin. To that end, its value is based on whatever someone is willing to pay for it. However, there isn’t a real underlying foundation for its price.
In other recent crypto news, the digital currency exchange Coinbase went public via a direct listing on Wednesday (April 14). Coinbase’s public market debut is “potentially a watershed event for the crypto industry and will be something the Street will be laser-focused on to gauge investor appetite,” Dan Ives, a tech analyst at Wedbush Securities, told CNBC in a recent interview.