Dogcoin, endorsed by Musk, has been classified as a “pyramid scheme coin”

Crazy speculators are not afraid of flash crashes and are increasing their holdings of bitcoin, aiming for $150,000; Musk’s endorsed “dogcoin” has soared 10 times in one month, but the magic is that it was once classified as a pyramid scheme by CCTV; the dream of “one coin, one room” continues.

More than 60 years ago, American social psychologist Leon Festinger studied a group of doomsday cultists who were convinced that aliens were about to destroy the earth. Unfortunately, when the “end” came, the Earth was unharmed. Even when the prophecy fell flat, the fanatical admirers continued to believe that it was simply a case of aliens suspending their plans to destroy the Earth.

Some stories are similar. When the prophecy fails, there will still be a group of people who will accommodate their own perceptions.

For example, coin speculators.

Almost most speculators are aware of the risks behind this action. They are aware of the complex steps involved in connecting to an exchange, and the possibility that funds may be delayed due to anti-money laundering. It’s just that they have heard too many legends of overnight riches and aspire to the same path to wealth and freedom, and they still choose to throw their money away in the face of the vain cryptocurrency.

Between the red and green K lines, the bull and bear arguments, even if they meet the plunge, they are still waiting for the arrival of the big bull market.

01 Wild hope: not afraid of flash crashes, increase bitcoin holdings, target $150,000
Since 2018, Wang Hai (a pseudonym) began to pay attention to bitcoin, from time to time to increase positions in speculative coins. On April 1 this year, he sent a WeChat to a friend: “Today I cleared tens of thousands of dollars of debt and sold all the bitcoins.” Of course this was just a joke.

At the end of last year, Wang Hai saw bitcoin prices break through the previous highs and entered for tens of thousands of dollars at a cost of nearly $30,000.

On the day of April 1, the bitcoin price once approached $60,000, and the market value of his holdings almost doubled.

Dogcoin, endorsed by Musk, has been classified as a "pyramid scheme coin"

Image source: coindesk

But apparently, he didn’t see it coming.

At this point, a number of coin speculators in his group were predicting where the next wave of highs would be. “After $55,000 signals a long bull!” “Could go back to $100,000!” “Up to $150,000 in 2025 before dumping!” “One coin, one house will come!”

Until April 18, Bitcoin suddenly flash crash during the day, dropping $8,000 in an hour. It also triggered a big dive in other digital currencies.

On April 18, Bitcoin suddenly flash crashed intraday

Ether, Ripple, and Dogcoin all sank more than 10% if calculated on a 24-hour decline. As a result, 470,000 people blew their positions and $39.5 billion in funds went down the drain.

On April 25, Bitcoin once fell below the $50,000 mark.

In fact, it is clear to many speculators that this big dive in cryptocurrencies is not only due to the Turkish central bank’s ban on using cryptocurrencies and crypto assets for purchases due to possible “irreparable” damage and transaction risks. Cryptocurrencies have been banned by many governments in recent years, including China, because of their potential involvement in money laundering and terrorist financing.

This wave of rising cryptocurrency prices was due to the listing of the largest U.S. cryptocurrency exchange on NASDAQ, which was interpreted by many industry insiders as the entry of cryptocurrencies into the mainstream financial sector, however, not long after the listing, the Coinbase CEO sold shares of the company for $290 million and insiders accumulated $4.6 billion in cash.

Dogcoin, endorsed by Musk, has been classified as a "pyramid scheme coin"

Coinbase cashing out shortly after its IPO, image source: Twitter/@DereckCoatney

Such behavior is intriguing.

Many investors in Wang Hai’s group didn’t panic, and many instead added to their positions at lower levels. They still believe that bitcoin will break $100,000 one day.

Wang Hai prides himself on being one of the more sober coin speculators. His returns have dropped from double to 60% or 70%, and he sold some of his coins to pay off his loans. But his groupmates are still shouting “bottom up for a villa by the sea” today. Only recently someone will occasionally complain: “Hasn’t it fallen enough?”

As of press time, bitcoin prices are hovering around $57,300, down nearly 10% from a high of $63,600 this month.

02 Magic: Musk Endorsement, “MLM Coin” Surges 10x in 1 Month
British independent film director Elliot feels that getting his hands on Musk-endorsed dogcoin is the best investment for 2021. Due to the impact of the new pneumonia epidemic, Elliot’s filming project was postponed, and with the London curfew, he was unable to go out, so he had nothing to do but join the coin speculation army.

By the end of 2013, Elliot had researched Bitcoin, but at that point it was not yet recognized and the price was less than $1. He chose to give up. Today he still regrets that he missed out on a shortcut to freedom. Now, he’s looking at dogcoin.

On April 15, Tesla CEO Musk posted a picture of a dog barking at the moon with the text “Doge Barking at the Moon” on his social media platform. The Doge in the text refers to the dog coin.

Dogcoin, endorsed by Musk, has been classified as a "pyramid scheme coin"

Image source: Twitter/@elonmusk

Throughout 2020, dogcoin’s price has slowly increased between $0.002 and $0.0046, and has risen nearly 10 times since the beginning of the year to the time of Musk’s post. At one point, Dogcoin was the fifth largest virtual currency in the world.

Elliot bought four or five thousand pounds (about 40,000 yuan) for about $0.15. On May 6, the price of dogcoin climbed to $0.6133, and his investment rose nearly three times.

Dogcoin, endorsed by Musk, has been classified as a "pyramid scheme coin"

In 1 month, dogcoin soared 10 times.

Elliot is convinced that dogcoin will go up again. “Musk has said it will go up to $1!” That was the opening line of his recommendation to his friends.

But Elliot wasn’t sure what the dogcoin had to offer other than Musk’s frequent mentions.

After checking the official website of Dogcoin, the reporter found that the cryptocurrency can be used for family and friends transfer, Internet community reward, except for P2P and data encryption, it seems to be no different from Q coin.

Dogcoin, endorsed by Musk, has been classified as a "pyramid scheme coin"

And in 2017, CCTV had listed Dogcoin as a capital pyramid scheme.

Photo source: Dogcoin official website

According to foreign media reports, the founder of Dogcoin started out to mock Bitcoin by putting a picture of a mocking dog in the Litecoin code, thus giving birth to Dogcoin. Who would have thought that the joke would walk in a magical direction. There was no technical kernel, but a bunch of clusters of followers clinging to a coin price of $1 or more.

A finance lecturer at the University of Technology Sydney has said to the public that he still can’t understand why dogcoin has such a high market cap. And a financial commentator is worried that although Musk endorsed dogcoin, only investors will be hurt if this type of asset bubble bursts. There is no clear data on how many dogcoins Musk holds.

Elliot is still recommending dogcoin, and some friends around him have already entered the market. He believes dogcoin will break $1 sooner than Musk will send people to Mars.

“There’s no question about it!” Elliot said.

03 Reporter’s Notebook: When Prophecies Fail
Like the group of “doomsday” worshippers more than 60 years ago, the group’s revelry may be a false result.

What is the speculation in coins?

Although Bitcoin is the first application of blockchain, its inefficient mode of operation continues to be criticized. Bitcoin’s pointless mining and resulting high energy consumption has been described by the aforementioned financial commentator as the “cancer” of the planet’s energy.

Bank of America Securities estimates that the global bitcoin network now emits 60 million tons of carbon dioxide into the atmosphere each year, roughly the same as the emissions of countries like Greece. Every time $1 billion flows into bitcoin, it’s the equivalent of 1.2 million additional fuel cars on the road.

Meanwhile, cryptocurrencies, which have yet to enter the public eye, are really a speculative orgy for a group of people.

In mid-April, the vice chairman of the Federal Reserve said that cryptocurrencies are not a store of value. At the same time, the U.S. White House once again expressed its concerns about cryptocurrencies in terms of money laundering activities.

As cryptocurrency prices rise and fall after a group of investors beat the drum still waiting for the next wave to enter the market.

The company’s main business is to provide a wide range of products and services to its customers. “Don’t worry, I won’t buy general coins, I’ll just look at the ones that Grayscale Fund holds positions in.” She is full of aspirations for the future.

“Aren’t you afraid of becoming a leek of the Grayscale Fund? With so many people entering the market, how much pie will be left in the market? You should be prepared to lose money!” One of her friends advised.

Now after the flash crash of the cryptocurrency price, she still believes in the KOLs investing around her and is even more sure that she is not the last one beating the drum.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/dogcoin-endorsed-by-musk-has-been-classified-as-a-pyramid-scheme-coin/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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