Over the past week, the cost of several Dogecoin clone tokens has grown exponentially. Experts explained what this could be connected with and why it is impossible to predict the value of such assets.
On October 6, the "meme" cryptocurrency Shiba Inu entered the top 20 largest in terms of capitalization. The market valuation of altcoin exceeded $ 9 billion with daily trading volumes above $ 14 billion. Over the past day, altcoin has risen in price by 44%, and over the week – by 224%.
At the same time, other Dogecoin clones have sprung up. For example, over the past 24 hours, the altcoin Akita Inu has risen in price by 50%, and over the week – by 222%. The Dogelon Mars coin demonstrated similar dynamics. At the same time, the price of the "original" grew by only 3% per day and by 27% per week.
Speaking specifically about Shiba Inu, its meteoric rise over the last week was caused by the so-called "Elon Musk effect", says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. A few days ago, the head of Tesla and SpaceX posted on his Twitter a photo of his Shiba Inu puppy named Floki. Initially, this did not affect the quotes of "meme" cryptocurrencies in any way, but then they began to rise sharply in price.
"Such tweets from Musk have repeatedly provoked surges in traders' interest in certain cryptocurrencies," Soshnikov recalled.
However, generally speaking about meme cryptocurrencies, the expert explained that interest in them always arises during periods of stagnation and calm in the sector of serious cryptocurrencies, such as bitcoin. For a long time, it could not overcome the pressure of bears, it gradually grew in price, but the crypto market participants needed more active trading and more opportunities for quick profit, the specialist believes.
"Memorial cryptocurrencies provide an opportunity to enjoy risky trading, the pleasure of such trading is a lot like gambling or roller coasters, and it is definitely fun for the amateur," he added.
Such tokens are rather "jokes" – it seems to us impossible to evaluate them in the same way as the leading cryptocurrencies, said Vladimir Smetanin, CEO of the Swiss financial company Newcent. He explained that at some point, for uncertain reasons – due to the actions of some players or the words of media people – there is a stir about one of these cryptocurrencies. It also quickly decreases, as it arises, and it is really very difficult to predict their movement, Smetanin emphasized.
Roman Nekrasov, co-founder of the ENCRY Foundation, called trading in crypto-currencies-memes a very gambling and exciting game in which you can also increase your assets. Such cryptocurrencies attract traders with these swings, the expert explained.
“Someone applies knowledge in technical analysis to trading, someone is guided by the emotional background in the market, someone is trading on Mask's tweets – all this has a right to exist,” Nekrasov said. He stressed that investing all free savings in such coins is definitely not worth it.
The expert advised to allocate 5-10% of the investment portfolio to the "meme" cryptocurrencies and negotiate with oneself about the readiness to lose these funds, since it is extremely difficult to predict the rates of such assets.
"Cryptocurrencies-memes are an excellent demonstration of the fact that an asset is valuable solely because it has value in the eyes of market participants," the specialist concluded.