-Amid Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk’s Dogecoin (DOGE) endorsements, the U.S. Securities and Exchange Commission has cautioned investors not to make investment decisions just because an investment has been recommended by “someone famous.”
-The SEC’s Office of Investor Education and Advocacy took to Twitter to warn investors against making decisions just based on celebrity endorsements.
-A Twitter user immediately responded by asking whether he should buy Dogecoin because Musk has recommended the meme cryptocurrency as a good investment.
-The price of dogecoin spiked Thursday morning after Tesla CEO Elon Musk mentioned the coin on Twitter, adding another chapter to the volatile history of a cryptocurrency that started as a joke.
-Thursday’s move comes after a wild day for cryptocurrencies saw bitcoin, ether and dogecoin all plunge sharply before clawing back a chunk of those losses later Wednesday.
-Musk, who talks and posts about dogecoin frequently, said earlier this month that he was working with developers to improve the cryptocurrency. He has also referred to it as a “hustle” on “Saturday Night Live” and said its value was largely speculative at this point.
Credits: Jesse Pound
Our Opinion:
We maintain our SELL standing on DogeCoin as we can see the whole market getting more cautious with cryptocurrencies. As a whole, DogeCoin is the perfect tool as an entertainment coin. Billionaires such as Elon Musk and Mark Cuban sharing their positive opinions on the crypto currency added great value to it. However, it also makes the coin volatile as the whole existence turns more intra-dependent on hype and news than the intrinsic value and real values.
-The SEC’s Office of Investor Education and Advocacy took to Twitter to warn investors against making decisions just based on celebrity endorsements.
-A Twitter user immediately responded by asking whether he should buy Dogecoin because Musk has recommended the meme cryptocurrency as a good investment.
-The price of dogecoin spiked Thursday morning after Tesla CEO Elon Musk mentioned the coin on Twitter, adding another chapter to the volatile history of a cryptocurrency that started as a joke.
-Thursday’s move comes after a wild day for cryptocurrencies saw bitcoin, ether and dogecoin all plunge sharply before clawing back a chunk of those losses later Wednesday.
-Musk, who talks and posts about dogecoin frequently, said earlier this month that he was working with developers to improve the cryptocurrency. He has also referred to it as a “hustle” on “Saturday Night Live” and said its value was largely speculative at this point.
Credits: Jesse Pound
Our Opinion:
We maintain our SELL standing on DogeCoin as we can see the whole market getting more cautious with cryptocurrencies. As a whole, DogeCoin is the perfect tool as an entertainment coin. Billionaires such as Elon Musk and Mark Cuban sharing their positive opinions on the crypto currency added great value to it. However, it also makes the coin volatile as the whole existence turns more intra-dependent on hype and news than the intrinsic value and real values.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.