Two cryptocurrencies that have been widely discussed in recent months are Dogecoin (DOGE) and the much more recent Safemoon, a token which purportedly protects everyday investors from whales dumping a few months after buying in at low prices – a move which has left over 1000 cryptocurrencies more or less dead in the water so far.
The company behind Safemoon attempts to do this by putting in place a steep 10-12% fee for selling or trading the token, half of which is redistributed to remaining holders.
Dogecoin, on the other hand, was created as a joke – but it’s popularity has skyrocketed in the past few months due to promotion by high-profile figures like Elon Musk and Snoop Dogg.
Both cryptos, however, have taken a tumble recently.
Market Cap Bogged Down By Bearish Traders
During a bearish swing that wiped nearly half a trillion USD off of the total market cap of all cryptocurrencies combined, the market caps of these 2 “internet darlings” suffered their fare share of losses.
According to Susannah Streeter – a senior investment and market analyst at Hargreaves Lansdown – predicting the moment whales decide to cash out and leave you holding the bag is quite difficult.
Much of the demand has come from traders hoping to benefit from future price rises rather than using the coins or tokens as a means of exchange. Predicting the point at which demand subsides and prices begin to fall is very difficult, if not impossible, and people risk getting their fingers seriously burnt.
Susannah Streeter [The Sun]
Worth around $0.054 on the 1st of April – which is still a massive increase compared to the price Dogecoin had at the beginning of the year – DOGE’s price increased nearly tenfold to $0.407 on the 19th of April before hitting a low point of $0.215, 4 days later. In the meantime, the price of DOGE has started slowly climbing again.
The same cannot be said of Safemoon though. After peaking at $0.000014 per token early last week, the price of Safemoon hit 0.000004 on the 23rd of April. The price then showed signs of recovery for 2 days, before starting to drop again.
Although cryptocurrencies have always been “high risk/high reward”, the drop of these two cryptocurrencies should remind us all to take the time to research the cryptocurrencies we intend to invest in, regardless of how much praise they get by internet forum users.
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