I’m sure you’re all aware by now of what’s been happening with GameStop shares recently. Shares have shot up from under $4 six months back to a high of around $468 this week.
GameStop was driven higher by a very clever campaign orchestrated on online forums such as WallStreetBets (WSB). They noticed that hedge funds had amassed a massive short position in GameStop equal to over 140% of the total shares. And they squeezed these shorts by buying shares and call options.
The WSB crowd appears to now be looking to altcoins and flexing their muscle. Dogecoin — one of the original altcoins — appears to be a target. Dogecoin is up 226% in the last 24 hours, as I write this on Thursday (1/28) at around 4:00pm.
Coindesk has a good article covering how dogecoin became the most recent speculative mania targeted by WallStreetBets.
I happen to know quite a bit about dogecoin. I met the creator, Jackson, on a trip to San Francisco in 2016 and have followed it since. Dogecoin started out as a joke based on a meme called Doge. It is essentially a bitcoin clone, but with one million times more supply.
I don’t consider dogecoin to be a serious project. It is rarely updated. And it is only popping now due to an investment craze/mania. However, it could go a lot higher. Who knows, this is a crazy market — the unlikeliest things seem to keep happening.
My recommendation: only invest in dogecoin if you make it a small speculative bet with money you can easily lose. It’s not a serious competitor to BTC. And it is currently valued at a market cap of over $3 billion! That’s a little insane…
However, recent interest in altcoins also appears to be picking up. In the Crypto Assets Strategies portfolio, Nano and Haven Protocol are doing quite well recently. I continue to like these positions.
Even OMG Network (OMG, formerly OmiseGO) has done well lately. This might be a nice opportunity to exit that position if you are still holding it.
Bitcoin is also seeing nice action — it’s back above $35k. I continue to hold and recommend members do the same. Bitcoin reaching $100k is certainly possible this year. As those of you who have been around a long time know, the types of pullbacks we saw recently are perfectly normal during bitcoin bull markets.