Dogecoin increases by 20%: price pump through TikTok?

The cryptocurrency Dogecoin has been around for almost 7 years. While the currency was initially considered a parody, it has now proven to be an anchor of stability in many years. Because with a market capitalization of around $ 336 million, the coin, which is based on the Japanese dog breed Shiba, ranks 33rd among all cryptocurrencies.

After DOGE had been largely stationary for the last 7 days, the day before yesterday the course exploded by around 20 percent. The reason for this was (and is) an absurd challenge on the Chinese video and music platform TikTok. Let’s take a look at what’s going on here.

Dogecoin price increases with TikTok

TikTok is currently going viral with a challenge that has the hashtag #DogecoinTikTokChallange. It is a video that now has around 500,000 views. The idea and content of the video is absolutely absurd, but obviously shows how quickly the users of the platform can be influenced.

In the video, the user calls jamezg97 to buy DOGE. The rationale is that everyone would get rich if the coin reached $ 1.

Let's all get rich! Dogecoin is practically worthless. There are 800 million TikTok users and if DOGE is suddenly worth $ 1, then you all have $ 10,000. Tell everyone you know.

The video was picked up by some users. These partially fueled the idea and encouraged viewers to invest in DOGE. Among other things, it says that everyone could only invest $ 25 to be rewarded with $ 10,000 in the end. The request for this is: "Please, just try it. Pump the coin! "

Pump and dump in combination with false expectations

It should be clear to everyone that this is clearly a pump and dump attempt. From the current perspective, it is of course difficult to say whether there is actually a connection between the call to TikTok and the course pump.

However, the crossover of almost half a million users should not be underestimated. What is certain, however, is that the expectations set at $ 1 per DOGE are completely unrealistic. The coin is currently trading at $ 0.002683. To reach the $ 1 mark, the price would have to increase by around 374x. With this, the nice Shiba dog would quickly reach a market capitalization that would outshine one or the other large coin.

In this sense, we can only say: think carefully about whether you want to use TikTok at all and if so, please do not follow calls like this.