A battered and bruised Dogecoin continues to draw support and confidence despite its continued freefall.
Dogecoin, 'Asset of the Year for 2020 and 2021'
Billionaire cryptocurrency exchange FTX chief executive Sam Bankman-Fried bestowed the meme coin the title, "Asset of the Year for 2020 and 2021," as reported in Forbes.
Bankman-Fried said on The Jax Jones and Martin Warner Show podcast, if there is a Time Person of the Year, the "Asset of the year for 2020 and 2021 should be Dogecoin." Dogecoin, Bankman-Fried said, "reflects our current economic climate," adding that it is the "asset that we all have chosen, that we all deserve-for better or for worse." He clarified that his remarks should not be taken as an endorsement or an anti-endorsement. "I'm not taking a position on it," he stressed.
Dogecoin price soared 10,000 percent over the past year, and has since went on a dizzying, volatile pace, but has since held on to its incredible gains, with loyal investors holding on to the coin for the long haul, despite the recent price fall.
Dogecoin Continues Freefall
Dogecoin is down 3.07 percent to 30 US cents as of 8:59am Friday, dropping 7.39 percent from last week and up 2.62 percent from the same period a month ago, CoinMarketCap reported. Its 24-hour trading volume is at $1.357 million.
Dogecoin's 52-week high stands at 74 cents, hours before Tesla CEO Elon Musk appeared on NBC's Saturday Night Live in May, and fell to its 52-week low at $0.0023.
If you bought Dogecoin at its 52-week low of $0.00023 and sold it at today's rate of $ 0.30, you would earn $0.30 for a 99.24 percent return. On the other hand, if you purchased the coin when it hit its record high of $0.74, and sell it at current prices, you'll get a negative return of 44 cents, Forbes added.
Dogecoin Benefiting from Restrictions on Meme Stocks
Dogecoin also benefited when meme stocks such as GameStop and AMC soared. Their rise stunned Wall Street after they outperformed traditional listings. Bankman-Fried remarked that such an occurrence "happens all the time in crypto". Dogecoin price skyrocketed early this year when the stock trading platform Robinhood issued restrictions on GameStop.
Bankman-Fried said the investment stoppage on GameStop funneled those hundreds of millions of dollars into Dogecoin. He said that Dogecoin's rise has been a result of investors' getting together on social media and then decide collectively "what this thing is valued at."
Even with a bleak short term view, Dogecoin still has a bright future, especially for those who are actively supporting it. Tesla CEO Elon Musk has never given up on his favorite coin, and continues to promote it whatever way he can.
As what Coinbase founder Fred Ehrsam said in a Bloomberg interview, that "If crypto has taught us anything, it is never to dismiss a good meme that couldn't later manifest into more concrete progress."