The last week has been a rocky one for the stock market, with the GameStop-Reddit business changing the way many look at it in the first place. In the wake of trading apps like RobinHood limiting buys of soaring stocks, many have looked to other stocks or even other currencies worth investing in, hoping the same crowdsourced push can lead to a rise in value.
One fairly popular topic has been Dogecoin, the cryptocurrency based on a meme about a smiling Shiba Inu. The price of Dogecoin has stayed extremely low since it was first created in 2013. But with a massive influx of people now looking to make memestocks popular, it’s apparently one of the next targets of Redditors to, as they say, go “to the moon.”
— GansitoPapafrito (@GPapafrito) January 31, 2021
Elon Musk has even gotten on board, causing Reddit day traders to freak out.
By Sunday, the hashtag #dogetothemoon was trending, the latest Doge-related hashtag to gain momentum ahead of what could be another hectic week of trading. Things haven’t been so smooth for the cryptocurrency, though, which has been unstable to say the least. According to Bloomberg, Dogecoin dipped precipitously on Saturday before seeing a slight rise on Sunday.
The digital coin fell 46% in 24 hours to $0.02582 as of 4:35 p.m. in New York on Saturday, according to CoinMarketCap data. It recovered to $0.03 Sunday, although still less than half of its Friday high, when a blistering sevenfold surge sent the coin to more than $0.07.
Amid the rally, Robinhood temporarily halted instant deposits for crypto buying on Friday, citing “extraordinary market conditions,” a spokesperson told CNBC. Users could still use funds already deposited in the platform to buy cryptos.
Time will tell if the coin, which is worth a fraction of a dollar right now, will ever reach the point Redditors hope. But if you’re hoping to join in, it’s important to know that RobinHood is already limiting buys on the coin as well, meaning it may be just as tough to keep things going for Dogecoin, as it has been for other retail stocks in recent days.