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What is Dogecoin?
Dogecoin is a cryptocurrency. Cryptocurrencies are digital assets with no central issuing authority (like a bank), but instead relying on shared ledgers verifying transactions are real.
The ‘crypto’ comes from the encryption techniques used to secure the ledger network.
Dogecoin, created in 2013, is a parody of the various alternatives to Bitcoin floating around in the crypto space.
Thanks to its welcoming community, low price, and the fact it’s based on the Doge meme, Dogecoin grew in popularity, eventually hitting a market cap of $2 billion in 2018. Last year, Elon Musk casually declared Dogecoin his favorite cryptocurrency. You could say this crypto has decent social clout.
In recent months, the price of Dogecoin has sat around $0.002501. Enter the TikTok crypto craze: causing prices to soar up to $0.005218 per coin.
TikTok Crypto: Gen-Z Market Manipulation
Last week, JamezG97 told his relatively small TikTok following of 6,000 teens to invest a modest $25 in Dogecoin, so they could “all get rich”. Since then, his video’s gone viral and is receiving press in both crypto and trading communities.
He’s inspired a trend of people investing and encouraging others not to ‘miss out’, with some hoping it’ll be their ‘saving grace’, and others aiming to get the price of a Dogecoin up to $1. Another outcome? The price of Dogecoin more than doubled, and total market cap inflated to around $500m last week.
TikTok and crypto is an unlikely combination, given many teens encouraging peers to invest in Dogecoin weren’t too sure of what Dogecoin actually was, calling DOGE a ‘stock’. While they’re not yet crypto experts, TikTok teens have mastered the art of social influence and virality. Market manipulation is just another demonstration of the far-reaching influence of TikTok teens.
Are TikTok Crypto Teens Onto Something?
It depends who you ask. Dogecoin was founded as satirical commentary on the speculative nature of crypto and financial markets. It’s creation questions whether the ‘get rich quick’ narrative of speculative trading has eclipsed the laudable anti-establishment, pro-decentralization goals set out by Bitcoin. Ex-Bloomberg analysts have called this recent rise in Dogecoin proof that crypto’s most common use case is still speculative. This is a sentiment strongly echoed by some TikTok suers, who have gone out of their way to tell people not to buy Dogecoin.
However, on the other hand, $25 is not a huge amount of money. This has prompted tons of young users to encourage others to purchase Dogecoin, assuring them that “it’s okay if they don’t really know what they’re doing”. When framed in the context of Gen-Zers who are now home after losing jobs, or perhaps watching their parents lose jobs mid-pandemic – the allure of a ‘get rich quick’ scheme becomes apparent.
Maybe it’s just another TikTok trend. Whatever the case, you can’t deny TikTokkers have influence.
This past year, TikTok has proved its power and the impacts it can have for all types of brands from entertainment, sports, politics, education and now finance. If you’d like to explore how TikTok created success for other brands, click here for the 3 TikTok marketing campaigns you can learn from.