Longtime cryptocurrency bull Mike Novogratz has cautioned against shorting Dogecoin (DOGE), citing retail investor interest in the meme cryptocurrency, CNBC reported Tuesday.
What Happened: The CEO and founder of cryptocurrency investment firm Galaxy Digital Holdings Ltd. BRPHF told CNBC’s Squawk Box that, while it would be “dangerous to be short” on Dogecoin, he wouldn’t hold a long position it it either.
Novogratz cited retail investors’ interest in Dogecoin, noting that Dogecoin speaks to a lot of the same movement that GameStop Corp. GME did, due to the crazy excitement from very young investors around meme assets.
See Also: How to Buy Dogecoin (DOGE)
“Retail has the bit between its teeth in lots of ways. They’re not giving up on GameStop. They’re not giving up on dogecoin right now,” said Novogratz.
Novogratz also noted that while Bitcoin (BTC) and Dogecoin staged strong rallies this year, they are very different in design and risk profiles.
Bitcoin, launched in 2009, is the world’s biggest digital currency and is growing in adoption. On the other hand, Dogecoin was started as a joke in 2013 and literally has “two guys that own 30% of the entire supply,” Novogratz added.
Why It Matters: Dogecoin started to attract attention around the time of the Reddit-fueled GameStop stock trading frenzy earlier this year. The Shiba Inu-themed cryptocurrency, which hit an all-time high of $0.4377 last Friday, has now emerged as retail investors’ darling.
Dogecoin's dominance of the cryptocurrency market has risen to almost 2% and it is now the sixth-largest cryptocurrency by market cap, as per CoinMarketCap data. However, the altcoin has fallen 19.2% during the past 24 hours and is trading at $0.3083 at press time.
Dogecoin is also receiving increased support from major corporations, including Conagra Brands Inc. CAG, which are using the joke cryptocurrency for marketing purposes.
On Monday, candy bar brands Snickers and Milky Way promoted the cryptocurrency ahead of “Doge Day.” Online tech retailer Newegg Inc. said it will now accept Dogecoin as an official payment method on its website.
Photo by Play Your Place on Flickr
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