By: ELLIOTT GARSKE
In the midst of Gamestop’s crazy rise in the stock market last week, a small cryptocurrency known as Dogecoin started climbing up as high as 600%. Now you may be wondering, “What is Dogecoin?” or “Why is it actually rising in the stock market”, which is actually very dependent on Gamestock’s interesting situation at the moment.
Dogecoin was started in 2013 at the peak of the Doge meme’s first big wave of being in the mainstream as a joke cryptocurrency between two engineers named Billy Markus and Jackson Palmer, which actually started gaining a large amount of attention to their surprise. Similarly, this unexpected jump in popularity also happened to come from reddit, which is a surprising coincidence.
For the next 8 years, nothing important really happened, until Reddit started investing into GameStop in order to make the hedge fund known as Melvin Capital lose money as a result of leaked information regarding them shorting GameStop’s stocks. Because of this, other stocks such as AMC surged up alongside it. This also included Dogecoin. The goal was to make Dogecoin’s price rise to $1, but many people saw it as a way for investors that already had money invested into it to sell and make other people lose their money, AKA a “pump and dump” scam.
But then, Elon Musk tweeted this about the situation, which seemed to single handedly make Dogecoin rise another 59%. But now, it seems to have gone down from $0.07 to $0.05 since it hit its peak. But that doesn’t mean other things might not take its place.