- Dogecoin climbed over 800% within 24 hours.
- The Reddit group seems to be behind the rally.
- Robinhood halts the ability to buy DOGE.
DOGE coin seems to become the next GameStop. The famous meme began to grow on Thursday after the Reddit community behind the GameStop price pump started mentioning DOGE as its new target on WallStreetBets.
The massive amount of retail traders teamed up on Reddit’s WallStreetBets this week to battle Wall Street’s hedge funds on their short-selling bets against video retailer GameStop. Institutional players retracted with billions-worth losses.
Redditors turn to DOGE
Reddit group SatoshiStreetBets users called DogeCoin the next GameStop and encouraged it to drive its price to $1 and even to the $10 level. The coin traded at around $0,007 on Thursday morning before the hype started.
SatoshiStreetBets is the equivalent of the WallStreetBets subreddit that was behind the GameStop price pump. The users on SatoshiStreetBets are also looking to drive up the prices of cryptocurrencies.
Due to Redditors’ actions, a famous meme-coin rallied more than 800% within the past 24 hours and reached an all-time high of $0,078175 on Friday morning. It increased over 150% within a single hour before the record highs and has since retracted by over 40%. DogeCoin trades at around $0,044 at the time of the publishing.
Prior to the DOGE rally Elon Musk has posted a fancy dog post on Twitter, which many of the followers perceived as a hint to run into DogeCoin. The founder of Tesla has long-been addressed as the influencer of DOGE after he once said the meme-coin is his favourite cryptocurrency.
On the flipside
- DogeCoin now ranks 12 biggest digital currency by market capitalization, according to CoinMarketCap.
- Pump-and-dump schemes that aim to boost asset prices based on false, misleading, or exaggerated statements are considered illegal.
Robinhood placed restrictions
The widely popular Robinhood trading app was accused of disabling the ability to buy DOGE during its price rally. The app was one of the most used trading platforms in GameStop’s case and also halted buying on GameStop (GME) shares on Thursday.
“As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today”, the company wrote on its blog post.