My attention was on Dogecoin for the past two days. I consider this important because Doge had reached at market cap levels close to $100 Billion, making it possibly one of the biggest market bubbles of all time.
I have given two warning posts on read.cash in the last two days, and I hope these posts have helped some people decide what kind of risk they are entering when buying Dogecoin at this kind of price.
My previous articles containing the warnings on Doge:
Later yesterday, I also posted this article on den.social (A Dragonchain related blogging website).
For the few that don't know who is Barry Silbert, he is the CEO of Digital Currency Group, the parent company of Grayscale.
While Dogecoin fans are all-in in Doge at a price that has reached astronomical levels, and just hours before Musk appears as the host of Saturday Night Live, Barry Silbert announced his company DCG is now shorting Doge.
For me, a very reasonable trade because the price Doge has reached is out of question unrealistic, and forced there by the mindless tweets of Elon Musk.
We've seen Doge making millionaires in just weeks. We've seen diamond hands and Dogecoin millionaires. I don't think this will last, and I kept giving warnings as I have had my share of pump and dumps.
Silbert going short doesn't mean that Doge can't first reach $1, and it doesn't mean that this trade will be profitable. But it is set at the best possible moment. I just don't think it is appropriate announcing it like that.
Also, there is another big problem that Silbert is facing. Grayscale accepts too many Bitcoins from whales as collateral for GBTC, and also the shares of GBTC are trading at a huge discount for far too long.
One of my first posts on the Den, two months ago, was about this discount. Bitcoin, the GBTC version of it, is trading at a discount to NAV, of more than 10%, on the OTCQX exchange.
The chart is getting worse and it is now close to three months this discount is active.
It is a big reason for Silbert to feel threatened by Doge and in his tweet asks to move the funds from Doge to BTC.
This announcement of shorting Doge, to me looks desperate move. Maybe not everything is bright at Grayscale, and between the institutions and the whales that are buying the Trust shares for different reasons, there could be enough friction to create concerns. Just a thought, I have no information on that, however, if I was head of an institution that invested in GBTC I would be alarmed.
Doge dropped by 25%. Maybe Bary Silbert shilled his short but this wasn't the reason. Doge will revisit its fair value which is below 1 cent. In BTC trading terms it will go back to 20 sats. Musk has helped inflate this humongous bubble and is responsible for those that will lose all their money, having bought while waiting for more tweets and Doge shilling.
DOGE/USD 3D with BBands and MACD. A grim outlook for Doge price.
Can Doge find support and bounce from this mess? Of course, it can, a short squeeze can send it flying to the moon and Musk will be so happy as well as all the shills and the degenerates investing in Dogecoin.
I'm having no part to do with this, I warned and now I'm going to stop warning. When Doge goes back to zero the fault will be only up to those that instead of investing in quality cryptocurrency products selected to pump a meme to the moon.
I am in this market for more than four years. I have seen Bitconnect rising to the top-10 and I have seen countless pump and dumps. This one is huge and it will be ashes left in the end of the day.
seems Elon isn't the only one with twitter influence. Thankfully i converted the few Dogecoin i had when it was at $0.7 to BUSD and then BCH. Now i'm happily giving my friends the ''I told you...'' talk.
Almost 40% down from top in just 24 hours from the previous ATH. Imagine putting 1K and losing $400 after waking up in the morning. This is Doge a joke coin, a meme, and a pump and dump. Not the first time it does that.
seems Elon isn't the only one with twitter influence. Thankfully i converted the few Dogecoin i had when it was at $0.7 to BUSD and then BCH. Now i'm happily giving my friends the ''I told you...'' talk.