Dogecoin, Elon Musk, and the coin craze on Reddit

Jed Rawson, 38, has reached an inescapable conclusion. “I’m pretty sure it’s the largest accumulation of wealth in my family for 500 years in my family tree,” he declares. “My dad was a teacher, I am one of seven children. And if you go back 500 years, in England everything is sock weavers and coal miners. ” This he says while looking at the rising price of Dogecoin, a cryptocurrency that was born as a mere joke and that today is approaching a total market capitalization of about $ 50 billion, more than six times in two weeks.

Rawson has become a star on the Reddit R / Dogecoin channel, dedicated to following the growth of cryptocurrency and where he has posted daily screenshots of his brokerage account at Robinhood. On Monday, he totaled more than $ 700,000, owning about 1.7 million Dogecoins.

“A guy on Reddit called me the Dogecoin DFV today,” he says proudly. He is alluding, elliptically, to the Redditor known as Deep F — king Value, or DFV, who helped fuel the months-long run in GameStop stock. “I’ve been riding this wave, and it’s been pretty wild,” says Rawson, who runs his own e-commerce consultancy in San Diego and during his spare time outside of Dogecoin.

Although wild it may be an understatement to define cryptocurrency. Dogecoin is today the sixth most valuable cryptocurrency, an all-time high for what was originally conceived eight years ago as a mere joke about money and the internet value, their logo is a Shiba Inu, a breed of dog often used in Doge memes. The token’s price has risen from about 6 cents two weeks ago to over 40 cents, and its low price per coin has surely contributed to its rise, allowing investors who cannot afford more expensive cryptos like Bitcoin or Ether to buy Dogecoins. Buying Dogecoins is a gamble that could become a permanently viable currency, and an unquestionable gamble given the frequent fluctuations in the value of cryptocurrencies, including the industry-leading Bitcoin.

As more people are betting on Dogecoin, R / Dogecoin is also seeing a surge in popularity, with the Reddit forum emerging as the virtual central epicenter of a financial mania. It now has more than 1.5 million members, an increase of 25% in about a week, and increasingly resembles R / WallStreetBets, the Reddit group that played a central role in the GameStop stock mania in late June. January.

Back then, it was difficult to know precisely how many GameStop trades came from R / WallStreetBets. And it is virtually impossible to determine exactly which Dogecoin trades originate from R / Dogecoin, as they are mostly anonymous social media users. who buy and sell digital tokens designed to hide the identities of their holders.

Nonetheless, Reddit communities and assets seem to be interrelated: self-reported feedback loops. As Dogecoin prices continue to climb, it sparks more conversation and interest on the Reddit forum, spurring more investments in the cryptocurrency, which then helps drive prices further, repeating the cycle.

“That has to be happening, at least to some degree,” says Tanner Sims, a 22-year-old R / Dogecoin member. “That’s where a lot of people are discovering Dogecoin, and it’s where everyone is together.”

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Like many at R / Dogecoin, Sims is a newcomer to the group, which has been around since the coin is live. Sims found the forum in July while researching potential cryptocurrency investments: Sims helps run his family’s hotel near Big Sur, California, and plans to go back to school and study finance at Texas Tech in the fall.

To start last summer, “I had $ 20 to spare,” he says, “so I threw it away,” buying about 500 Dogecoins. “I started to do more research on Reddit and what people thought of the coin. Then, for the last few months, I have been spending a large part of my salary on shopping ”. And like many at R / Dogecoin, he had an unshakable belief. “I knew it was going to go up at some point.”

The Sims and the rest of R / Dogecoin have spent a lot of time thinking and arguing about Elon Musk. The second richest person in the world and who has positively tweeted about Dogecoin almost a dozen times in the last four months and expressed his support while talking in the new Clubhouse audio chat app: “Dogecoin was made as a joke to poke fun at cryptocurrencies, but fate loves irony. The most ironic outcome would be for Dogecoin to become Earth’s currency in the future, ”Musk said in his participation in Clubhouse.

R / Dogecoin has come to view Musk’s interest as the highest possible form of validation. “The endorsement of Elon Musk has been a huge thing,” says Sim, whose Dogecoin stake is around $ 16,000. “It gave me a lot of confidence.”

When Musk is not talked about, the Reddit community has unsurprisingly tended to obsess over the latest price hike and speculate where the coin might go. Its recent 42 cent level drew thunderous applause on the message board, in part because someone made a reference to the Hitchhiker’s Guide to the Galaxy from Douglas Adams, a science fiction series where 42 is said to be the answer to everything in the universe. And partly because the Redditors had already declared April 20, or 4-20, as Doge Day, an attempt to appropriate, or at least join in, the subversive holiday. dedicated to the culture of marijuana and weed, which like cryptocurrencies, It has spent many years being frowned upon by the mainstream.

One of the most popular posts of the past month garnered 23,300 upvotes, the Reddit equivalent of Facebook likes, thanks to a personal short story and an attached GIF meme.

Also reads: Dogecoin explodes: meme coin has a market value of 52 billion dollars

The post was the work of Toben Blalock, 48, of Tulsa, Oklahoma, who six years ago used a different Reddit forum to trade his Xbox for 1.15 million Dogecoins and currently has about $ 200,000 in doges after actively exchanging them since 2015.

Blalock told this story in the post and included some self-deprecating humor: an animated video clip of a dog in an astronaut suit floating around a space station, the words “I have no idea what I’m doing” under the weightless canine.

These days, Blalock worries many at R / Dogecoin that they really have no idea what they are doing as they pile on crypto with digitally driven euphoria. “Those coins are a great thing to play with,” he says. “But a lot of people are investing their life savings. And I think it’s a terrible idea right now. “

By: Abram Brown

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Dogecoin, Elon Musk, and the coin craze on Reddit

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