Dogecoin has been growing in popularity in recent months, with more and more people jumping in to ride the hypetrain of the once-joke cryptocurrency. However, an expert has warned to think first before investing significantly in the cryptocurrency.
Michael Novogratz, an ex-hedge fund manager and current CEO of the cryptocurrency investment firm Galaxy, applauded Dogecoin and its community for popularizing the so-called meme coin. Nonetheless, he acknowledged there are dangers in investing in it given its volatility.
Dogecoin Value: A Dangerous Investment?
In an interview with Bloomberg, Novogratz first admitted that Dogecoin has a strog community backing it, highly influenced by the likes of Elon Musk and Mark Cuban. However, while it is certainly a good story, he noted that it is a "dangerous investment" as the Dogecoin price value can easily go down just like how quickly it goes up.
The crptocurrency superstar also emphasized the lack of development behind the Dogecoin ecosystem, which is why it remains a joke crypto. Novogratz added that it is a "retail frenzy" as of now, hinting how it can easily fluctuate at any moment--especially with more and more people buying until it slows down.
For what it's worth, in a recent interview, Novogratz echoed the same sentiments about Dogecoin. With the support behind it, he noted that Dogecoin's volatility is "fueled by mania." He also shared that the cryptocurrency is still immature compared to the big ones like Bitcoin and Ethereum.
"The network's immaturity is revealed in qualitative factors like a lack of infrastructure and development," Novogratz said, per MSN.
Dogecoin Price Prediction: $1 Value Soon?
As reported here at ITech Post on Tuesday, the Dogecoin price reached the $0.50 mark and even hovered at 60 cents on Wednesday, per MSN.
The price increase comes ahead of Elon Musk's SNL apparance on May 8, where he is expected to make some key remarks about Dogecoin. This is after he tweeted that he is "The Dogefather."
Dallas Mavericks owner and billionaire investor Mark Cuban has also shown support to Dogecoin, even allowing the cryptocurrency to be used as a payment option for Mavs tickets.
With the current trend it is going, the Dogecoin price predictions point to the possibility of the cryptocurrency reaching the $1 mark. Nevertheless, as Novogratz noted, it can change quickly--be it positive or negative.