Yahoo Finance Dogecoin surges 680pc as TikTok users flock to joke currency
TikTok users have engaged in a “get-rich-quick” scheme by buying up a near-worthless cryptocurrency and increasing its value by 680pc.
The currency, Dogecoin is a digital coin similar to Bitcoin. It can be traded virtually and transactions are recorded on a blockchain, a digital ledger. But, it was created as a joke, is virtually worthless and is based on a popular meme.
Users of Dogecoin frequently joke that the digital asset, which is worth just a fraction of a penny, will one day skyrocket “to the moon”.
However, TikTok users have now taken up that challenge. One user, James Galante, told followers: “Let’s all get rich. Dogecoin is practically worthless. There are 800 million TikTok users. Once it hits $1, you’ll have $10,000. Tell everyone you know.”
@jamezg97 Wait til the end it’s worth it ##dogecoin ##stocks ##crypto ##DogecoinTiktokChallange
♬ Lets get rich tiktok - jamesgalante
There are now more than eight million TikTok videos tagged with “Dogecoin”. “Dogecoin challenge” has 319,000 posts on the video sharing app.
While the promotion of the coin appears to be largely tongue-in-cheek, it has still managed to boost the value of the cryptocurrency to more than 680pc its average price in 2019.
One Dogecoin is now worth around half a cent. With more than one billion dogecoin in circulation, the theoretical value of the currency is now $550m (£435m).
The official Twitter account of the creators of Dogecoin cautioned users against speculation. It said: “Be mindful of the intentions people have when they direct you to buy things. None of them are in the spot to be financially advising.”
The surge in the value of Dogecoin is still small compared to its boom during the 2017 rush by retail investors on Bitcoin and other digital currencies. At that time, one Dogecoin reached as much as one cent.
