Doge Coin Roulette
Should you spin the Doge-wheel Roulette?
Short Answer: Probably not.
Long Answer: No.
What is going on?
Good question! It is always important to understand the context of what is going on before making a decision. So, we're going to start by laying down the context of what is going on. At the end of the day, the choice you make is your own - I'm just here to provide insight into the matter at hand.
First off, Doge coin is being manipulated by social media. Users on Tik Tok have been promoting investment in the project in light of mutually beneficial prospective gain. There are a lot of cliche statements being used which are iconic of pump and dumps I have personally seen in the past:
"If we all put in X amount, just imagine when it hits Y."
"Lets keep it going and the rest of the market will join in"
"Its a group mentality, we can all get rich!"
"Doge coin is the next big project."
Let the record by clear that this is mass promotion and market manipulation at its finest. Doge coin is a meme coin. It solves no problem, nor has any utility. It was created as a meme in 2012 and hasn't changed at all since. There is no fiscally wise reason to be an investor in this project. At all.
History of PnDs:
This is not the first pump n dump scheme to plague the cryptocurrency market, and it will not be the last. Crypto is innately vulnerable to these schemes because it is a highly unregulated market and the decentralized structure allows for covert activities. These groups were very very very very very popular near the 20k peak of BTC in December 2017. Even today, I still receive spam messages from "Big Pumpers", or whatever bullshit PnD groups still operate.
Another important thing to note is that manipulation of a security for financial gain is a federal crime. What makes this logistically challenging is it largely depends on where it is occurring. If it is occurring in the US (like Doge coin on Robinhood), then the situation changes a bit..
If you do know of influencers/pages encouraging this behavior, you can secure a very large amount of money (if they are caught). Here is a link to the .Gov website detailing the harms of security fraud/manipulation. However, here is the snapshot you should probably be aware of.. I'm not trying to scare you into not buying Doge, just want to ensure that you have the opportunity to be educated on the risk - the choice you make is your own.
Another thing that poses risk to novice investors is using the Robinhood platform. Due to KYC regulations, this account must be directly connected to your real identity. This makes it astoundingly easy to be caught, because there is no mirage between you and online activities. Compare this to 'traditional' outlets which use online crypto exchanges without the same requirements - very different personal levels of risk.
Another thing to consider is that you don't own the asset itself. RH crypto leaves much to be desired, and the fact that you dont actually have a wallet for the crypto you "own" is concerning. Not your keys, not your crypto!
Should you join in?
Short Answer: if this is your first time ever purchasing cryptocurrency, then this doesn't seem like a good idea. The cryptocurrency market is highly speculative, extremely volatile, and an emerging disruptive sector. It truly is the wild west, and not fit for novice investors. Your psychology, fear, and doubt will cause you to make irrational choice.
It is never as simple as "lets take doge coin from .001 to $1".
Long Answer: in any situation where there is extreme upwards movement, risk becomes very hard to manage. The quicker the rise, the harder the fall. It is inevitable that this asset will continue to experience extreme volatility. I don't think any experienced investor or trader is looking at this as an opportunity, If you had Doge before, yeah sure enjoy your payday! However, I do not think there will ever be enough serious confluence on this coin to merit risking real money.
Don't trust strangers on the internet telling you to do something. Very rarely do they have your best interest in heart.